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ANSWER THE FOLLOWING FINANCE QUESTIONS FAST! got to finish my homework IN THE NEXT 30MINS OR NO PAYMENT A recent advertisement in the financial section

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ANSWER THE FOLLOWING FINANCE QUESTIONS FAST! got to finish my homework IN THE NEXT 30MINS OR NO PAYMENT

image text in transcribed A recent advertisement in the financial section of a magazine carried the following claim: "Invest your money with us at 14%, compounded semiannually, and we guarantee to double your money sooner than you imagine." How long would it take to double your money at 14%, semiannual compounding? about 10 years a little more than five years never cannot be determined about 7 years What would you pay for a stock which just paid a $5 dividend (D0) if the expected dividend and earning growth rate is 4% and you require a 16% return on your investment? $3 3 $4 3 $5 1 $7 7 The current price of Houston Tennis Inc. Stock is $50. Dividends are expected to grow at 4% indefinitely and last dividend was $2.0. What is the required rate of return on Houston Tennis Inc.? 8.2 % 9.1% 15 % 10 % D.11.6 10 % 11 % 21 % If you pay $1,000 for the privilege of receiving $199.25 for each of the next ten years, what interest rate are you earning on your money? You pay $20 to get $28 one year from today. What is your return on investment? 40% 108 % 140 % 80% How much would you be willing to pay for an investment which paid you $100 at the end of each year for seven years? Assume you can earn 12% a year on other types of investments. $456. 37 $360. 45 $612. 21 $700. 00 What is the future value of $212 ten years from today at a rate of interest of 12% $658. 43 $526. 20 $42.8 $892. 70 You deposit $50 in the bank today and three years later you have $61.25 in the bank. What annual rate of interest did the bank pay you over the three-year period? 7% 10 % 6% 22 % If you were offered $10 ten years from today and you can earn 20% on your investments, how much would you be willing to pay today for the $10. $10. 00 $12. 00 $1.6 1 $5.2 0 If you make an annual end-of year deposit of $200 to your retirement account for twenty years, and the account earns 15% per year, how much will you have available for retirement twenty years from today. $20,4 88 $ 4,000 $10,8 21 $40,0 00 Which of the following types of compounding will cause a deposit of money to increase most rapidly? annual semi- annual quarterly daily You borrow $2,000 to buy a car at 12% interest compounded monthly. How much are your monthly payments if your plan to pay off the auto in three years? [PVIFA(1,36)=30.1114]. $71.8 1 $128. 30 $55.5 5 $66.4 2 How much money must you deposit in the bank today to make five end-of-year annual withdrawals of $500? The bank pays 7% interest on your account. $2,5 00 $ 701 $2,0 50 $ 457 How much is $100 worth two years from now with quarterly compounding at a stated 12% rate. $138. 22 $112. 0 $126. 67 125.9 4

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