Alex invested dollar 10.500 in an account that pays 8 percent simple interest. How much money will he have at the end of four years? dollar 12.650 dollar 12, 967 dollar 13.020 dollar 13, 860 dollar 14, 285 An ordinary annuity is best defined by which one of the following? increasing payments paid for a definitive period of time increasing payments paid forever over a stated time period equal payments paid at regular intervals of time over a started time period? equal payments paid at regular intervals of time on an ongoing basis unequal payments that occur at set intervals for a limited period of time. You are borrowing dollar 18, 700 to buy a car. The terms of the loan call for monthly payments for 5 years at 18 percent interest. What is the amount of each payment? dollar 287.71 dollar 291.40 dollar 301.12 dollar 474.86 dollar 412.76 You are considering two projects with the following cash flows: Which of the following statements are true concerning these two projects? Both projects have the same future value at the end of year 4, given a positive rate of return. Both projects have the same future value given a zero rate of return. Project X has a higher present value than Project Y, given a positive discount rate. Project Y has a higher present value than Project X, given a positive II only I and III only II and III only II only IV only You are considering a project which will provide annual cash inflows of dollar 7, 500, dollar 2, 700, dollar 8,000, and dollar 12, 430 at the end of each year for the next four years, respectively. What is the present value of these cash flows, given a 9 percent discount rate? dollar 24, 136 dollar 30, 630 dollar 16, 388 dollar 21, 453 dollar 15, 103 Your father helped you start saving dollar 20 a month beginning on your 5^th birthday. He always made the you deposit the money into your savings account on the first day of each month just to this month out right. "Today completes your 17^th year of saving and you now have E. 6.12 percentage account. What is the rate of return (APR) on your savings? 5.98 percentage 5.30 percentage 5.47 percentage (Bonus Question) You've just won the lottery, congratulations. You and your heirs will receive dollar 50,000 per year forever, with the first payment received at the end of the first year. If the above appropriate discount rate is 8 percentage, what is the present value of your prize? dollar 600,000 dollar. 625,000 dollar 675,000 dollar 691, 233 None of the above
