1. Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $35,601,353. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for 80% of the entire construction project. Management has committed to save $1,800,000 per semiannual period. The firm earns 12.29% APR per year on the funds it saves. How many YEARS does the company have to wait before expanding its operations?

a.5.69

b. 6.67

c. 6.11

d. 10.64

2, Three years ago, your grandfather gave you a $38,130 cash gift. You would like to invest this money so that you can give it to your grandchildren 53 years from today. How much additional money will you have to gift to your grandchildren if you can earn an average of 7.57% APR instead of 7.23% APR on your savings?

a. $368,729

b. $1,019,224

c. $436,032

d. $727,909

e. $281,660

3, Latham Motors has a $1,000 face, 13.29% coupon bond outstanding with a yield to maturity of 12.67%. The bond matures in 28 years and pays interest semi-annually. What is the current market price of this bond?

a. $1,047.37

b.$1,040.28

c.$2,062.66

d.$525.06

e.$1,040.17