Question
Note: Timer has started, 55 minutes left to answer please! 1. Consider the cash flows in selections 1 through 4. In each case, the first
Note: Timer has started, 55 minutes left to answer please!
1.Consider the cash flows in selections 1 through 4. In each case, the first cash flow occurs at the end of the first period, the second cash flow at the end of the second period, and so on. Which of the following selections has thelowestPRESENT VALUE if the discount rate is 4%?
A.$200; $200; $200; $200
B.$0; $0; $0; $875
C.$750; $0; $0; $0
D.$50; $50; $50; $700
2.Consider two investment opportunities, Investment A and Investment B. Investment A pays interest at the rate of 18% per year, compounded quarterly. Investment B pays interest at the rate of 17.8% per year, compounded monthly. Which investment provides the better return?
3.Compute the present value of a perpetuity that pays $ 7,800 annually given a required rate of return of 9 percent per annum.(Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).
4.Assume that you deposit $ 11,128 each year for the next 15 years into an account that pays 16 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today?(Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).
5.Assume that you deposit $ 2,460 into an account that pays 13 percent per annum. How much money will be in the account 25 years from today?(Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).
6. You borrowed some money at 8 percent per annum. You repay the loan by making three annual payments of $ 238 (first payment made at t = 1), followed by five annual payments of $ 522 , followed by four annual payments of $ 883 . How much did you borrow?(Round your answer to 2 decimal places; record your answer without commas and without a dollar sign).
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