Question 1 (1 point)

For the next 4 years, you decide to place $970 in equal year-end deposits into a savings account earning 3.38 percent per year. How much money will be in the account at the end of that time period?

Round the answer to two decimal places.

Your Answer:

Question 1 options:

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Question 2 (1 point)

What is the present value of the following annuity?

$2,566 every year at the end of the year for the next 12 years, discounted back to the present at 7.60 percent per year, compounded annually?

Round the answer to two decimal places.

Your Answer:

Question 2 options:

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Question 3 (1 point)

You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 13.0 percent, compounded annually.

End of year

1.$991

2.$3,037

3.$1,066

4.$2,551

What is the present value of this investment if 13.0 percent per year is the appropriate discount rate?

Round the answer to two decimal places.

Your Answer:

Question 3 options:

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Question 4 (1 point)

You have been offered the opportunity to invest in a project that will pay $5,942 per year at the end of years one through three and $10,410 per year at the end of years four and five. If the appropriate discount rate is 10.9 percent per year, what is the present value of this cash flow pattern?

Round the answer to two decimal places.

Your Answer:

Question 4 options:

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Question 5 (1 point)

What is the accumulated sum of the following stream of payments?

$6,052 every year at the beginning of the year for 13 years, at 9.02 percent, compounded annually.

Round the answer to two decimal places.

Your Answer:

Question 5 options:

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Question 6 (1 point)

You have accumulated some money for your retirement. You are going to withdraw $93,379 every year at the beginning of the year for the next 20 years starting from today. How much money have you accumulated for your retirement? Your account pays you 14.38 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows.

Round the answer to two decimal places.

Your Answer:

Question 6 options:

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Question 7 (1 point)

A commercial bank will loan you $28,867 for 4 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 3.62 percent of the unpaid balance. What is the amount of the monthly payments?

Round the answer to two decimal places.

Your Answer:

Question 7 options:

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Question 8 (1 point)

You plan to buy the house of your dreams in 15 years. You have estimated that the price of the house will be $99,877 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 13.93 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?

Round the answer to two decimal places.

Your Answer:

Question 8 options:

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Question 9 (1 point)

You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 10.11 percent, compounded annually. How much is this investment worth at the end of year four?

End of year

1. $366
2. $987
3. $552
4. $171

Round the answer to two decimal places.

Your Answer:

Question 9 options:

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Question 10 (1 point)

What is the present value of a $730 perpetuity discounted back to the present at 10.26 percent.

The answer should be calculated to decimal places.

Your Answer: