b) A payment of $40 a year for 20 years starting in one year's time Q A single payment of $500 in year 3 Dy A perpetuity of $30 a year starting in one year's time. 16) If the interest rate is 6% which of these investments w A) A payment of $342.17 today common stock which will pay a $1.00 per17) The dividend is expected to grow at the rate of share dividend one year from the date of purchase 4%per year share of this stock? You are considering thepunhase of XYZCompany s he appropriate discount rate for this investment is 14% what is the price of one A) $10.00 B) s2s.0o $714 D) Cannot be determined without maturity date 18) is)Your real estate agent mentions that homes in your price range require a payment of $1,200 per month for 30 years at 0.75% interest per month. What is the size of the mortgage with these terms? )$393,120.03 $128,035.0s$149,138.24 D) S147.940.29 9) Assume the total expense for your current year in college equals $20,000. How much19) would your parents have needed to invest 21 years ago in an account paying 8% compounded annually to cover this amount? A) $1,728.08 B) $1,600.00 9 s3.97311 D) $952.46 20) What is the value on 1/1/17 of the following cash flows? Use a 10% discount rate, and round your answer to the nearest $1.00 201 $100 1/1/20 1/1/21 1/1/22 $300 $400 $500 1/1/23 A) $1,500 B) 5880 $1,065 D) $968 21) In calculating the Standard&Poor's stock price indexes, how are adjustments for stock21) splits made? A) By adjusting the numerator B) Quarterly, on the last trading day of each quarter Q Automatically, due to the manner in which the index is calculated D) By adjusting the divisor