9. You invested $1,000 five years ago, but the economy has not done well. You calculate your

compounded annual rate of return and discover that is was - 5% over this period of time.

What is the value of your investment today?

A) $773.78

B) $950

C) $1,050

D) $1,276

10. You are interested in purchasing shares of preferred stock in your favorite beverage

company. The stock is paying a constant dividend of $10 per year. How much should you

pay per share if k is 8%?

A) $62.50

B) $125.00

C) $1.25

D) Impossible to determine

11. What a deal! Your new car only costs $28,300 after rebates and trade. If you finance it for 60 months at 6% annual interest, what will be your monthly payment?

A. $471.67

B. $544.40

C. $547.12

D. $1,751.08