5) If inflation in Wonderland was 3% per month in 2016, what was the annual rate of D) 36.00% 8) inflation? 9 40.09% A) 42.58% B)41.27% 9) An oder book displays the following information: Sell Orders Buy Orders Price 100$18.17 $18.18 $18.19 Shares Shares 200 300 100 Price $18.15 $18.14 $18.14 500 100 You place a market order to buy 100 shares. At what price will your order be executed? A) 18.15 B) 18.14 D) 18.17 10) You have just retired with savings of $1.5 million. If you expect to live for 30 years and 10) to earn 8% a year on your savings, how much can you afford to spend each year? Assume that you spend the money at the start of each year A) 112,148.50 B133,241.15S123,371.44 D) S120,000.00 11) You can invest your money at a rate of 7% per year. At this rate it will take you just overyears to double your money. 13) 10 C)55 D) There is not enough information to answer this question "Give me S5,000 today and I'll return$ 10,000 to you in 5 years," offers the investment broker. To the nearest percent, what annual interest rate is being offered? in- A) 14.87% B) 12.84% C) 12.29% D) 13.67% 13) What is the effective annual rate of interest on a deposit that pays interest of 10% continuously compounded? A) 10.51796 B) 1.105% 10.000% D) 9.531% 149 If the future value of an gnnuity due is $25,000 and $24,000 is the future value of an 14 ordinary annuity that is otherwise similar to the annuity due, what is the implied discount rate? A) 5.00% B)8.19% 9 1.04% D) 4.17% 15) How much must be invested today in order to generate a 5-year annuity of SI,000 per 15) year, with the first payment 1 year from today, at an interest rate of 12%? A) $3,746.2:5 B) S4,037.3 $3,604.78 D) $4,604.78