5. You deposited $5000 into an account at an annual interest of 8% compounded semiannually. What is the future value of this $5,000 after 4 years? *

a) $8,112

b) $7,112

c) $1,250

d) $6,843

e) None of the above

6. You have just won the lottery and you will receive 20 annual beginning-of-year payments of $5 million each. If you expect to earn a 9% compounded semi-annually, what will be the current value of the lottery payments? *

a) $67,966,468

b) $47,986,467

c) $97,211,422

d) $27,956,468

e) None of the above

7. You have just applied for a job contract at Zoom Company. This company will pay you $75 at the end of the first year, $225 at the end of the second year, and $300 at the end of the fourth year. Currently you have a saving account in the bank that pays you a rate of 8% compounded annually. What is the future value of such contract at the end of the fourth year? *

a) $1,000

b) $300

c) $657

d) $557

e) None of the above

8. Zoom has inventory turnover of 4x, it has sales of $200,000, in addition it has current assets of $270,000 and current liabilities of $80,000. The quick ratio for the company is: *

a) 2.75x

b) 2.80x

c) 3.37x

d) 4..23x

e) None of the above