MBA 635.21 - Financial Management: Fall 2020 Part 2- 40 points Exam #1-Part 2: Due: September 12, 2020 @ 2:45pm Multiple Choice: 5pts each 31. Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000 this moming into an account that pays 5 percent interest, compounded annually. Andy will withdraw his interest earnings and spend it as soon as possible. Barb will reinvest her interest earnings into her account. Given this, which one of the following statements is true? A. Barb will carn more interest the first year than Andy will. B. Andy will carn more interest in year three than Barb will. C. Barb will car more interest the second year than Andy. D. After five years, Andy and Barb will both have earned the same amount of interest. E. Andy will cam compound interest 32. Travis invested $8,250 in an account that pays 4 percent simple interest. How much more could he have earned over a 7-year period if the interest had compounded annually? A. $341.41 B. $296.44 C. $302.16 D. $266.67 E $258.09 33. What is the present value of S42,000 to be received 22 years from today if the discount rate is 14 percent? A. $2,351.49 B. $3,147.07 C. $2,841.41 D. $1,806.18 E $2,291.06 34. When you retire 35 years from now. you want to have $1.2 million. You think you can cam an average of 9 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 5 years from today. How much more will you have to deposit as a lump sum if you wait for 5 years before making the deposit? A. $27,414.14 B. $26,319.47 C. $29,891.11 D. $31,662.08 E. $33,406,78