need help with hw questions

of 390,009 , If the interest rate is 3.5%. He this a good twesiment foe Sammy? What is the poesent value of this anriuly? A. The PY is 330,57272 so this is a gobd investrineta for 5 armin. 4. The fiN is 532.52.72 se this is NOT a gand imestruent kor Sainmy Q. The py in 333.532.30 so this is a good investment for Sammy QUESTION 14 maturiy of a stock it consisesed indefaite. 11. 310 7. e 84114 Suppase that Saminy hent 550,000 to his hinend. The friend pays him back 315,500 in year 1,36,400 in year 2,426,000 in year 3 . 59,500 in yoar 4 and \$12.000 in yest 5 The interest rate in 54%. What in the Presers value of these cash fiowi? the this a good deal for Sammy? 4. The peesent value of the cash flows $50,200.45 so this is a gsod deal tse Samnin. th. The presenf virke at the eash flows in 550200 a 45 so this 15 NOT good deal for Sammy C.The dresent value of the cash hies is 540.395.11 so this is Nor a posd dialfor Sammy QUESTION 16 1utiersent fund be in 5 yeas? - \$20.1714t= Le 5 88170 [. $30 .73 D. 339.57305 In his account afier 9 years? K. 515972.93 E.5*9,1657t C 121.093.53 Q. 5276600 Sammy borrowed $100,000 trem an investar. He paid the investor back as fotows: Year 1 \$33,000 Year 2515000 Year 3:$47006 Yiar 4 515000 The investor could have put the $100.000 in a sawhgs account that paid 3.88 st a yoar oid the investor get a better rate of return loaning to 5 animy or would the savings account have iven him a better return? A. The savings account is better because the PV of the foan payments is more than 5100,000 . 8. The savings account is beteer because the PV ef the foan nayments is less than 5100.000 C. The toan is better because the PY of the foan payments is morethan 5100.000 D. The loan is better because the py of the loan payments is less than 5100,000 Suppose Barik of Hantsville and Fiest Nasional Bank, both par 35% aneual interest on their savings accourts. Bank of Ifuntavele cempouinds quaderf, Firal National compeunds annually. Wolch of the following is a trua statement? A. Since they have the same interest rates, moner invested in eather account wall have the same value after 6 years A. Investing in First National wife always yieid a grealer retum shce they coanpound annuaby: C. Investing in Bark of thuntov will always yeild a greater return stince they compoand quaterfy. Q Componaing frequeccy makes no efference to the amouet ef return in a swisgs account. QUESTION 20 You tiave seen thoio the rade of iaterest makes a big difierence on fintse value and fresent value calcuiatsons Which of ehe following is inse? 2. A tighar ielarest rate increasas future values and increakts present vales. E. Ahighen interest rate increases futat values and decreapes present valies