8.Compute the present value of $3,000 paid in four years using the following discount rates: 3.0% in year 1, 4.0% in year 2, 5.0% in year 3, and 6.0% in year 4.

A.$2,516

B.$2,500

C.$2,491

D.$2,109

E.$1,999

9.What is the combined value in year 3 of a $1,000 cash flow made in year 7, a $1,500 cash flow made in year 10 and a $2,000 cash flow made in year 15 when interest rates are 12.25percent?

A.$2,018

B.$1,859

C.$1,798

D.$1,725

E.$1,271

10.What annual rate of return is earned on a $8,950 investment that grows to $19,765 in eight years?

A.10.05%

B.10.41%

C.11.09%

D.11.73%

E.12.29%

11.Assume you borrow $500 from a payday lender. The terms are that you must pay a fee of $97 in advance (today) and one year from now you need to repay $785. What implied interest rate are you paying?

A.43.09%

B.57.00%

C.76.47%

D.81.23%

E.94.79%

12.A stock investor deposited $3,450 six years ago. Today the account is valued at $2,180. What annual rate of return has this investor earned?

A.6.65%

B.7.37%

C.8.45%

D.9.74%

E.less than 9.74%