An ordinary annuity is best defined by which one of the following? A. Increasing payments paid for a definitive period of time B. Increasing payments paid forever C. Equal payments paid at regular intervals over a stated time period D. Equal payments paid at regular intervals of time on an ongoing basis E. Unequal payments that occur at set intervals for a limited period of time 7. 8. How is an annuity due defined? A. A stream of cash flows occurring for less than one year B. An annuity stream of payments that is disbursed rather than received C. An annuity stream of payments that is received rather than disbursed D. A set of equal cash flows occurring at the end of each period E. A set of equal cash flows occurring at the beginning of each period 9. Gerald invested $6,200 in an account that pays 5 percent simple interest. will he have at the end of ten years? A. $8,700 B. $9,000 C. $9,300 D. $9,678 E. $10,099 How much money 10. What is the future value of $2,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually? A. $8,505 B. S10,251 C. $9,724 D. $7,865 E. $11,357 11. Today you earn a salary of S36,000. What will be your annual salary twelve years from novw in you earn annual raises of 3.6 percent? A. $55,032.54 B. $57,414.06 C. $58,235.24 D. $59,122.08 E. $59,360.45 12. An investment offers $5,300 per year for 15 years, with the first payment occurring one year from now. If the required return is 7 percent, what is the value of the investment? A. $72,240 B. $70,658 C. $75,741 D. $48,271 E. $25,250