Angie just won the lottery. The prize is yearly payments of $100,000 compounded annually for 30 years with the first payment being made today. What is the value of this prize today at an 8% interest rate?

	$1,125,778.33
	$1,215,840.60
	$1,271,650.59
	$1,280,128.26

What is the present value of $10,000 to be received in 5 years at 12%?

	$5,674.27
	$8,928.57
	$17,623.42
	none of the above

Your are given the following information:

Hotel X

Return: 10%

Weight (proportion of portfolio): 75%

Risk (standard deviation of return): 3%

Hotel Y

Return: 20%

Weight (proportion of portfolio): 25%

Risk (standard deviation of return): 9%

Calculate the standard deviation of the portfolio with a of 0.

	4.5%
	3.18%
	0%
	none of the above

If asset x has a standard deviation of 10 percent, and the market portfolio has a standard deviation of 20 percent, and the correlation of their returns is .5, what is the beta?

	1.0
	.5
	.25
	0

Given a two-year loan of $50,000 and an annual interest rate of 8 percent, how much interest will accrue during the life of the loan? (Assume no principal payments during the term.)

	$4,000
	$8,000
	$400
	None of the above