An investment is expected to yield $300 in three years, $500 in five years, and $300 in seven years. What is the present value of this investment if our opportunity rate is 5%?

Select one:

a. $735

b. $864

c. $885

d. $900

e. None of these solutions is correct

Your daughter is born today and you want her to be a millionaire by the time she is 35 years old. You open an investment account that promises to pay 12% per year. How much money must you deposit each year, starting on her 1st birthday and ending on her 35th birthday, so your daughter will have $1,000,000 by her 35th birthday?

Select one:

a. $2,317

b. $3,455

c. $5,777

d. $9,450

e. None of these solutions is correct

You inherit $300,000 from your parents and want to use the money to supplement your retirement. You receive the money on your 65th birthday, the day you retire. You want to withdraw equal amounts at the end of each month for the next 20 years. What constant amount can you withdraw each month and have nothing remaining at the end of 20 years if you are earning 7% interest compounded monthly?

Select one:

a. $1,200

b. $1,829

c. $2,326

d. $2,943

e. None of these solutions is correct

Today is your 21st birthday and your bank account balance is $25,000. Your account is earning 6.5% interest compounded quarterly. How much will be in the account on your 50th birthday?

Select one:

a. $159,795

b. $162,183

c. $163,832

d. $164,631

e. None of these solutions is correct

You have just retired with savings of $1.5 million. If you expect to live for 30 years and to earn 8% a year on your savings, how much can you afford to spend each year? Assume that you spend the money at the end of each year.

Select one:

a. $112,148.50

b. $120,000.00

c. $123,371.44

d. $133,241.15

e. None of these solutions is correct.

How much must be saved at the end of each year for the next 10 years in order to accumulate $50,000, if you can earn 9% annually? Assume you contribute the same amount to your savings every year.

Select one:

a. $3,291.00

b. $3,019.27

c. $3,587.87

d. $4,500.33

e. None of these solutions is correct.

Today is your 20th birthday and your bank account balance is $25,000. Your account is earning 6.5% interest compounded semiannually. How much will be in the account on your 50th birthday?

Select one:

a. $159,795

b. $162,183

c. $163,823

d. $170,351

e. None of these solutions is correct

What is the future value of $10,000 on deposit for 2 years at 6% simple interest?

Select one:

a. $10,600

b. $11,236

c. $11,200

d. $13,382.26

e. None of these solutions is correct

You are borrowing $245,000 to purchase a home. The loan agreement requires a monthly payment based upon a 4.5% quoted APR over 20 years. What is your monthly mortgage payment? Select one:

a. $1,326.33

b. $1,549.99

c. $1,783.87

d. $1,803.65

e. None of these solutions is correct