PLEASE answer all or none.

1) Which of the following statements most accurately represents our discussion on the role of a corporation?

Group of answer choices

Minimizing costs is most important

Maximizing sales is most important

Maximizing profits is most important

Maximizing shareholder value is most important

2) You want to have $1 million 30 years from now. Assuming a 10% rate of return, how much do you have to invest today in a single lump sum in order to get the $1 million?

Group of answer choices

$32,405

$6,082

$85,298

$57,309

3) You are trying to choose between two investments:

AInvest $2,400 per year for 10 years, earning an 8% annual rate of interest.

OR

BInvest $200 per month for 10 years, earning an 8% annual rate of interest.

Which of the following is most correct?

Group of answer choices

There is no way to tell which investment has the higher future value.

Investments A and B have identical future values.

Investment B has the higher future value.

Investment A has the higher future value.

4) How much must you invest per month in order to have $1 million 20 years from now? Assume a 9.5% annual rate of interest with monthly compounding.

Group of answer choices

$527

$150,692

$29,294

$1,405

5) Given a payment of $3,000 per year for 20 years and a 7% annual discount rate, what is the present value?

Group of answer choices

$31,782

$3,000

$64,443

$40,219

6) How much can you borrow if you are willing to make payments of $1,190.50 per month (at 6% annual rate) for 30 years?

Group of answer choices

No solution. Cannot compute this.

$150,000

$133,433

$198,565

7) You wish to have $1,000,000. You will invest $600 per month, earning 8% per year. How many months until you reach $1 million in total value?

Group of answer choices

No solution

375

358

180

8) Assume a home mortgage of $200,000, with an interest rate of 5.5% for 30 years (monthly payments). If you pay an extra $300 per month towards the principle of the loan, how many months will it be until you pay off the loan?

Group of answer choices

269

223

214

188