36. Sue has S 320 as of today. How much would she have after 8 years if she invests the $320 at 8.5%? Assume annual compounding. a $614.59 b. $731.37 C.$510.11 d. $590.01 e. $602.30 37. Joe wants to retire with a nest egg of $1,000,000. If he invests $2,400 per year i 8%, how many years will it take him to reach his goal? an account paying a. 26 years b. 46 years c. 66 years d. 106 years 38. Select the CORRECT statement. a. e present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due. If a loan has a nominal annual rate of 8%, then the effective rate will never be less than 8%. If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different. The proportion of the payment that goes toward interest on a fully amortized loan increases over time. An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%. b. C. d. e. 39. GeoTel's finances are shown in Table 1. GeoTel's combined Capex+ &Net Operating Working Capital is expected to be $12,000. Compute the Free Cash Flow to the firm. Table 1 REVENUE COST OF GOODS GROSS INCOME DEPRECIATION EXPENSE EARNINGS BEFORE INTEREST&TAXES INCOME TAXES (AT 25%) NET INCOME $175,000 $120,000 $55,000 $5,980 $49,020 $12,255 S36,765 a. $24765 b. $30,745 c.$37,020 d. $48,795 e. Cannot be computed from the above information