A family is looking to purchase a car in $5$ years for $$24,000.$ If they can earn $8\%$ on their investments annually, how much will they need to deposit in their account at the end of each year to have enough money saved in five years? $($Round to the nearest dollar.$)$

A$.$ $$4,091$

B$.$ $$4,445$

C$.$ $$4,640$

D$.$ $$4,261$

Luke Skywalker is looking to borrow $$8,500$ to pay for his new light saber. The annual interest rate on the loan is $9\mathrm{.}4\%$ and needs to be paid over four payments. What will the payment be if they are due at the beginning of the period. $($Round to the nearest dollar.$)$

A$.$ $$2,448$

B$.$ $$2,419$

C$.$ $$2,304$

D$.$ $$2,850$

A retiree is $55$ years old and wants to set up a perpetuity that will pay them $$15,000$ every year, beginning at the end of this year. If they can invest at a $8\%$ rate, how much would it cost to set up a perpetual cash flow? $($Round to the nearest dollar.$)$

A$.$ $$200,000$

B$.$ $$187,500$

C$.$ $$166,667$

D$.$ $$135,200$

What is the expected payment of a perpetuity that can be purchased with $$250,000$ given a $7\%$ interest rate. $($Round to the nearest dollar.$)$

A$.$ $$16,875$

B$.$ $$14,900$

C$.$ $$17,500$

D$.$ $$12,150$

You need to receive $$25,000$ in perpetuity and are able to invest at a rate of $13\%.$ How much needs to be invested today? $($Round to the nearest dollar.$)$

A$.$ $$252,325$

B$.$ $$192,308$

C$.$ $$144,350$

D$.$ $$178,571$

A new investment will produce $$32,000$ in cash flow in the first year. Cash flow $($cash distributions$)$ will then increase by $3\%$ forever. If you can invest the cash flows at $7\mathrm{.}25\%,$ how much will you be willing to pay for this perpetuity? $($Round to the nearest dollar.$)$

A$.$ $$711,111$

B$.$ $$721,111$

C$.$ $$633,111$

D$.$ $$752,941$

Your grandmother has saved $$1,000,000$ and believes she will live another $20$ years. Her investments earn a guaranteed return of $5\%$ and Inflation is $2\%$ annually. How much can your grandmother withdraw at the beginning of each year while maintaining her real spending level in dollars $($i$.$e$.,$ growing her annual spend at the rate as inflation$).$ Her expected balance at the end of $20$ years would be $$0.$

A$.$ $$89,130$

B$.$ $$64,941$

C$.$ $$65,632$

D$.$ $$72,925$

You are considering an investment in a growing perpetuity. The investment promises an initial payment of $$20,000$ at the end of this year and subsequent payments that will grow at $4\%$ annually. Your cost of capital is $9\%.$ What is the present value of this growing perpetuity to you?

A$.$ $$372,925$

B$.$ $$365,632$

C$.$ $$378,130$

D$.$ $$400,000$

Your firm borrowed $$152,300$ the bank for $3$ years. The quoted rate $($APR$)$ is $12\%,$ and the compounding is daily, what is the effective annual rate $($EAR$)?($Round to one decimal place.$)$

A$.14\mathrm{.}3\%$

B$.11\mathrm{.}7\%$

C$.12\mathrm{.}7\%$

D$.12\mathrm{.}5\%$