QUESTION 1 Rio Inc. offers a perpetuity that pays annual payments of $7,200. This contract sells for $80,000 today. What is the interest rate? 9.0 percent 7.0 percent 10.0 percent O 8.0 percent QUESTION 2 4 po 15 years from now, you will be inheriting $30,000 What is this inheritance worth to you today if you can earn 8 percent interest compounded annually? $7,156.40 $9,457 25 $8,390.62 $6,830.49 QUESTION 3 4 points Which one of the following is an ordinary annuity, but not a perpetuity? $800 paid at the end of each monthly period for an infinite period of time $400 paid at the beginning of every quarter for five years, starting today $200 paid weekly for one year, starting one week from today S600 paid at the beginning of each monthly period for one year QUESTION 4 4 points You will receive annual payments of $5,000 at the end of each year for 10 years, but the first payment will be received in year 3. What is the present value of these payments if the discount rate is 8 percent? o $30,260.49 o $24,387.13 o $26,633.40 $28,251.12