$4,589 $4,019 $3,918 $3,750 none of the answers is correct. Question 40 Roger Barkley wants to set up a scholarship at his alma mater. He is willing to invest $500,000 in an account earning 10 percent. What will be the annual scholarship that can be given from this investment? (Round the number.) none of the answers is correct. $500,000 $5,000 $100,000 $50,000 Carlyn Botti wants to invest $3,500 today in a money market fund that pays quarterly interest at 5.5 percent. She plans to fund a scholarship with the proceeds at her alma mater, Towson University. How much will Carlyn have at the end of seven years? (Round the number.) $5,091$3,548$5,075 none of the answers is correct. $5,130 Question 39 You plan to save $1,250 at the end of each of the next three years to pay for a vacation. If you can invest it at 7 percent, how much will you have at the end of three years? (Round the number.) $4,589 $4,019 $3,918 $3,750 none of the answers is correct. none of the answers is correct. $10,900 1 pts Question 32 How long will it take $10,000 to reach $50,000 if it earns 10% interest compounded semiannually? 33 years 8.5 years 16.5 years 17 years 22 years Question 33 Calculate the present value of $200,$500,$700,$900, and $1,200 at the end of years 15 respectively. The appropriate discount rate is 8%. $1,670 $2,100 $3,500 $2,427 $2,648 If a firm needs to finance a new corporate headquarters building, then it would most likely seek the funds in the capital market. cash market commodity market. money market. futures market. Question 35 Which of the following statements is correct? Higher interest rates increase business investment (or spending) because more capital projects can carn a high enough return on investment to cover the added interest cost. The SEC and FED invest retirement funds on behalf of businesses or government agencies that provide retirement programs for their employees. Today, major money center banks known as commercial banks in the U.S are not allowed to provide investment banking services. Secondary markets are like used-car markets in that they allow investors to buy or sell previously owned securities for cash. All the answers are correct. Ted currently owns 100 shares of a publicly traded stock which he would like to sell. Which one of the following provides the most efficient means for Ted to sell his shares? Stakeholder purchase Issuer sponsored Dutch auction Proxy statement Secondary market transaction Private placement transaction Question 37 Which of the following statements is incorrect? The earnings from compounding drive much of the return earned on a long-term investment because the longer the investment period, the greater the proportion of total earnings from interest earned on interest. All the answers are correct except one. The time value of money implies that the further in the future you receive a dollar, the more it is worth today. A dollar today is worth more than a dollar received in the future. The time value of money implies that a dollar received today is worth more than a dollar received tomorrow