AD 3. ED 7. c 8. EB 9. CB 10. a Problems: Each problem is worth the number of points in parenthesis. For the problems, you must show your work to receive full credit. 4. CB 1. (6 points) If you invest $7,000 today and invest $3,000 each year for 40 years, how much will you have in 40 years assuming you earn 9% each year? o 12 0,000 PMT VYR 120000 17.1424 - 3000 7233-51 460 -7000 2. (6 points) Phoebe owes $3,000 on a credit card. The credit card company tells her that if she will pay $85 per month, her credit card will be paid off in 48 months. What is the APR on the credit card? 3ooo -85 o Exam 1 Fall 2019 4. (8 Points) The DuPont analysis is often used to provide a quick look at company performance before undergoing a more extensive analysis. Based upon the DuPont Analysis provided below, discuss the relative performance of two railroad companies, Union Pacific and Norfolk Southern (Data from morningstar.com). Profit Margin Equity Multiplier PA Total Asset Turnover 0.39 0.30 EM Return on Equity RO 23.74% 16.43% Union Pacific (UNP) Norfolk Southern (NSC) 26.13% 23.22% 2.33 2.36 S