PLEASE ANS AS SOON AS POSSIBLE

Q1: You're trying to save to buy a new $170,000 Ferrari. You have $34,000 today that can be invested at your bank. The bank pays 6.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

Multiple Choice

• 25.56 years

• 25.81 years

• 25.31 years

• 23.56 years

• 26.06 years

• Q2: Imprudential, Inc., has an unfunded pension liability of $700 million that must be paid in 19 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?

• Multiple Choice

• $246,499,630

• $235,986,289

• $226,731,925

• $231,359,107

• $212,850,378

• Q3: You have just received notification that you have won the $2.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 75 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent?

• Multiple Choice

• $1,965.57

• $2,004.88

• $1,808.32

• $9,280.25

• $1,926.26

• Q5: You are scheduled to receive $33,000 in two years. When you receive it, you will invest it for 9 more years at 6 percent per year. How much will you have in 11 years?

• Multiple Choice

• $58,540.45

• $62,643.85

• $55,752.81

• $37,889.07

• $52,965.17