MULTIPLE CHOICE: Select the best response to each question or statement below and write the formula used as appropriate. 01. For a real interest rate of 6% per year, compounded semiannually, and an inflation rate of 2% per 6 months, the effective semiannual market interest rate is closest to? A. 10% B. 8% C. 5% D. 4% FORMULA USED: 02. If compounding is monthly, find the nominal interest rate that will make a $43,000 single payment at the end of 4 years equivalent to a $2,000 quarterly payment over 4 years. A. 15.00% B. 15.20% C. 15.50% D. 16.00% FORMULA USED: 03. Assume you are told that by investing $100,000 now, you will receive $10,000 per year starting in year 5 and continuing forever. If you accept the offer, the rate of return on the investment is: A. Less than 10% per year B. 0% per year C. 10% per year D. Over 10% per year FORMULA USED: 04. The perpetual annual worth of investing $50,000 now and $20,000 per year starting in year 16 and continuing forever at 12% per year is closest to: A. $4200 B. $8650 c. $9655 D. $10,655 FORMULA USED: 05. The present worth of a 9-yr increasing geometric gradient is $23,632. The interest rate is 6% per year, and the rate of change is 4% per year. What would be the cash flow amount in year 1? A. $6000 B. $5000 C. $4000 D. $3000 FORMULA USED