Calculate the future value of a lump sum of $1,000 invested at 8% for 20 years. $3,838 $5,679 $3,207 $4,661 none of the above QUESTION 11 Calculate the expected return (mean) for the following data: 2% 6% 1096 14% P .25 .32 .28 .15 6.95% 5.98% 7.74% 7.32% none of the above Other factors held constant, if the compounding frequency decreases, then the effective annual rate decreases the present value of a lump sum decreases the future value of a lump sum increases none of the above QUESTION 9 A good example of an annuity due is a car loan a home loan rent all of the above QUESTION 6 "Discounting" means to create an unreasonable cashflow goal for a manager calculate the future value of an annuity use different rates each period calculate a present value QUESTION 7 The relationship between the future value interest factor and the present value interest factor is best described as direct indirect inverse backward