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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
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) 38.112 b) 87.112 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
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