For the following mixed stream of cashflows, determine the future value at the end of the final year if deposits are made at the beginning of each year into an account paying annual interest of 12%, assuming no withdrawals are made during the period.

Year Cash Flow Stream

1 20,000

2 9,100

3 6,000

2-Find the present value of the following mixed stream of cash flows(as of Year0) using a discount rate of 9%. Assume the cash flows are received at the end of each year.

Year Cash Flow Stream

1 6,000

2 4,000

3 7,000

3-Today you invested $39,100 in an investment that pays 7% and will mature in 8 years. Once the investmentmatures, you will reinvest your funds for another 2 years in another investment that pays 4%. What will be the value of your investment after 10 years?

4-If the present value of a perpetual income stream isincreasing, the discount rate mustbe:

A.Decreasing

B.Increasing

C.Changing unpredictably

D.Keeping pace with inflation

5-$1,200 is deposited today into an account paying6% interest compounded semiannually. How much interest will have been earned after 25years?

6-$1,200 is received at the beginning of year1, $2,200 is received at the beginning of year2, and$3,300 is received at the beginning of year 3. If these cash flows are deposited at 12percent, their combined future value at the end of year 3is:

7-$100 is received at the beginning of year1, $200 is received at the beginning of year 3. If these cash flows are deposited at 12percent, their combined future value at the end of year threeis: (Round to the nearest wholedollar)

8-If a US Saving bond can be purchased for$29.50 and has a maturity value at the end of 25 years of$100, what is the annual rate of return on thebond?

9-Shylock Bank offers a savings account with a nominal rate of9% and quarterly compounding. What is the effective rate of theaccount?

10-The future value of a dollar_________ as the interest rate increasesand______ the farther in the future an initial deposit is to be received.

A.increases; increases

B.increases; decreases

C.decreases; decreases

D.decreases; increases