An investment offers to pay $320 a year forever starting at the end of year 4. If the interest rate is 13%, what is the investment's value today? (Assume annual compounding) Multiple Choice $1,705.97 $1,509.71 $1,859.51 $1,927.75 How much more is a perpetuity of $200 worth than an annuity of the same amount for 20 years? Assume an annual interest rate of 8% and cash flows at the end of each period. Given annual compounding. Multiple Choice $536.37 $590.01 $509.55 $552.46 In general, what is changing as you read down the left-hand side of a balance sheet? Multiple Choice The assets are increasing in maturity. The assets are becoming less liquid. The assets are increasing in value. The assets are becoming more fully depreciated. Old Time Savings Bank pays 5% annual interest rate on its savings accounts. If you deposit $3300 in the bank and leave it there. Assume bank pays annual compounded interest. How much interest will you earn in the first year? How much interest will you earn in the thrid year? How much interest will you earn in the 8th year? [Please round your answer to the nearest whole number] Multiple Choice $165;$182;$232 $165;$191;$244 $165;$182;$244 $165;$191;$232 What is the present value of the following cash-flow stream if the interest rate is 12%? You receive 400 at the end of first year, 600 at the end of second year, and 440 at the end of third year. (12% is annual interest rate and given annual compounding) (Please round your answer to the nearest whole number] Multiple Choice $1110 $1149 $1026 $1286