P5-8 Calculating Interest Rates [LO3] 11 In January 2007, the average price of an asset was $26,958. 5 years earlier, the average price was $21,408. What was the annual increase in selling price? 1 points Multiple Choice References 5.19% 4.72% -4.51% 4.25% 5.66% P5-20 Calculating the Number of Periods [104] 14 You expect to receive $16,000 at graduation in two years. You plan on investing it at 7 percent until you have $93,000. How long will you wait from now? (Do not round your intermediate calculations.) 1 points Multiple Choice References 26.01 years 31.37 years 28.01 years 30.81 years 24.01 years P5-19 Calculating Future Values (LO1] 21 You are scheduled to receive $39,000 in two years. When you receive it, you will invest it for 8 more years at 5.5 percent per year. How much will you have in 10 years? 1 points Multiple Choice References $44,009.65 $56,860.14 $59,852.77 $66,617.63 $62,845.41 P5-9 Calculating the Number of Periods (L04] 24 You're trying to save to buy a new $190,000 Ferrari. You have $45,000 today that can be invested at your bank. The bank pays 6.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car? 1 points Multiple Choice References 25.22 years 24.47 years 24.97 years 24.72 years 22.72 years P5-10 Calculating Present Values (LO2] 25 1 Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 23 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.0 percent, what is the present value of this liability? points References Multiple Choice $216,586,107 $192,420,987 $180,640,110 $200,274,905 $196,347,946