Find the present value of 30 annual payments of $4,000 per annum where the first payment is made 17 years from now. So there are 30 annual payments from t=17 to t=46 inclusive. The discount rate is 17% pa. The present value of these payments is:

Select one:

a.

$17.1815

b.

$321.4831

c.

$1,891.0773

d.

$1,908.2588

e.

$23,281.5432

A stock is expected to pay its first $2.2 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 7% pa. Estimate what the stock price will be in 4.25 years from now. The stock price at time 4.25 is expected to be:

Select one:

a.

$29.8735

b.

$31.4286

c.

$31.9647

d.

$34.2022

e.

$41.8992

Calculate the annual inflation rate between 30th June 1990 when the consumer price index (CPI) was 57.1 and 30th June 2009 when the CPI was 92.9. Note that you should find the annual CPI inflation rate between these dates.

Select one:

a.

2.9044% pa

b.

2.7409% pa

c.

2.5948% pa

d.

2.4635% pa

e.

2.3448% pa