A perpetuity will pay $2,000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%? O A. $3,490 O B. $20,367 O C. $8,650 OD. There is no solution to this problem. If the current rate of interest is 9%, then the future value (FV) of an investment that pays $1,100 per year and lasts 19 years is closest to: O A. $70,868 O B. $30,372 OC. $50,620 OD. $60,744 You are borrowing money to buy a car. If you can make payments of $280 per month starting one month from now at an interest rate of 12%, how much will you be able to borrow for the car today you finance the amount over 5 years? A 517 622 O B. $12,587 OC. 515,105 OD. 57.552 A rich donor gives a hospital $1,000,000 one year from today. Each year after that, the hospital will receive a payment 7% larger than the previous payment with the last payment occurring in ten years' time. What is the present value (PV) of this donation, given that the interest rate is 9%? O A. $8,452,700 OB. $5,016,890 OC. $4,226,350 OD. $7,607,430 Suppose that a young couple has just had their first baby and they wish to insure that enough money will be available to pay for their child's college education. They decide to make deposits into an educational savings account on each of their daughter's birthdays, starting with her first birthday. Assume that the educational savings account will retum a constant 11%. The parents deposit $1,900 on their daughter's first birthday and plan to increase the size of their deposits by 6% each year. Assuming that the parents have already made the deposit for their daughter's 18th birthday, then the amount available for the daughter's college expenses on her 18th birthday is closest to: O A. 500,133 OB. $70,005 OC. $154,209 OD $140,100