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4.Which one of these statements related to growing annuities and perpetuities is correct? A. You can compute the present value of a growing annuity but
4.Which one of these statements related to growing annuities and perpetuities is correct? A. You can compute the present value of a growing annuity but not a growing perpetuity. B. In computing the present value of a growing annuity, you discount the cash flows using the growth rate as the discount rate. C. The future value of an annuity will decrease if the growth rate is increased. D. An increase in the rate of growth will decrease the present value of an annuity. E. The present value of a growing perpetuity will decrease if the discount rate is increased. 5. Your grandmother is gifting you $150 a month for four years while you attend college to earn your bachelor's degree. At a 4.8 percent discount rate, what are these payments worth to you on the day you enter college? A. $6,201.16 B. $6,539.14 C. $5,589.19 D. $6,608.87 E. $6,870.23 6. Your employer contributes $60 a week to your retirement plan. Assume you work for your employer for another 20 years and the applicable discount rate is 9 percent. Given these assumptions, what is this employee benefit worth to you today? A. $28.927.38 B. $27,618.46 C. $29,211.11 D. $25,306.16 E. $25,987.74
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