6. Sam, a friend of Pam, made a similar investment of $20,000 at a much later date when he turned 35. Now that he is also 50, what is his investment worth if his investment also an earned an interest rate of 6.5% compounded semi-annually. A) $52,207.37 B) $44,491.96 C) $32,500 D) None of these 7. For the cash flows shown table below, evaluate the unknown value, X for an interest rate of 6% compounded annually. Year 0 2 6 Cash Flow in $ |20,000 -5,000 -10,000 X A) $5,000 B) -$9,054 C) $6,377 D) $8,252 8. A sum of $500,000 will be invested by a firm two years from now. If money is worth 12%, what will be the worth of this investment 10 years from now? A) $1,553,000 B) $1,569,000 C) $1,463,100 D) $1,238,000 9. (T/F) One thousand dollars invested grew to be $3,000 six years hence. If the interest was compounded yearly, the interest rate on this investment was 20%. 10. For an interest rate of 10% compounded annually, evaluate the value of "X" from the cash flows given in table below. Year 0 1 2 3 4 5 Cash flows -10,000 + X 1,600 1,700 1,800 1,900 3,500 A) $2,316.85 B) $3,295.43 C) $1,064.74 D) $1,102.75