Q31. Present value is

a. the value now of a future amount.

b. the amount that must be invested now to produce a known future value.

c. always smaller than the future value.

d. all of these

Q32. Chris invested $15,000 today in a fund. To what amount would the investment grow in 3 years if the fund earns 8% annual interest compounded semiannually? Use formula.

Q33. Lora is borrowing $30,000 to be paid in 30 equal monthly instalments at the end of each period. Interest rate is 12% compounded monthly. What would be the amount of monthly payment and the interest portion of the 2^nd monthly payment?

Q34. Bo will invest $10,000 today in a fund that earns 5% interest per year compounded annually. How many years will it take for the fund to grow to $17,100?

Q35. How much investment today in a fund that pays 8% interest compounded quarterly will result in $4000 collection at the end of every quarter for the next 5 years?

Q36. Leon's VISA balance is $793.15. He may pay it off in 12 equal end-of-month payments of $75 each. What interest rate is Leon paying?

Q37. Gina bought a car through financing which requires 60 equal monthly payment of $500 per month at the end of each month. Interest rate is 12% compounded monthly. What was the price of the car?

Q38. Royall Company purchased a machine by issuing a $30,000 zero-interest-bearing note which is due after five years. Implied interest rate is 5% compounded annually. At what amount should this machine be recorded?

Q39. What is future value of investing $2000 today at 12% after 3 years assuming interest is compounded monthly?

Q40. What is future value of investing $2000 today at 12% after 3 years assuming interest is compounded quarterly?