cial 13) Suppose you want to invest $2,000 today and $4,000 in one year's time and $6.000 in two years' time. How much will you have at the end of 3 years it the fund pays 5.5% annually? a) $13,310.58 b) $13,130.58 c) $13,301.58 d) $13,301.58 14) Calculate the effective annual interest rate if your bank quotes you 10% per annum, compounded quarterly. a) 14.01% b) 10.38% c) 10.00% d) 2.50% 15) What is the present value of an annuity of $500 paid annually over five years, with the first payment to be received at the end of the first year, and with a yield currently of 8% per annum compounded annually? a) $1.996.36 b) $1,699.36 c) $1,969.36 d) $1,669.36 16) What is the present value of an annuity of $250 paid at the beginning of each six month period over 5 years, with a yield currently of 8% per annum compounded semi-annually? a) $2,018.83 b) $2,108.83 c) $2,810.83 d) $2,180.83 17) In an efficient market: a) security prices are seldom far above or below their justified level. b) share prices react quickly to new information. c) Investors will not make superior returns consistently dy all of the above. 18) Systematic risk is also referred to as: al market risk. b) economic risk. c) diversifiable risk. d) financial risk