QUESTION 10 What would you consider to be a fair value for the following investment? You would receive $1000 in year 1, $2,000 in year 2, $3,000 in year 3, $4,000 in year 4 and $5,000 in year 5. The expected interest rate over this period is 10%. However, interest on this opportunity is compounded on a semi-annual basis. How much would you be willing to pay for these future cash flows today? Round your answer to the nearest dollar. a. PV = $10,568 O b. PV = $10,653 c. PV = $15,000 d. PV = $11,865 QUESTION 11 You have just received your new credit card from BigBox Credit. The stated or nominal annual rate is 17.75%. This is also the APR. After reading the very fine print on your credit card contract, you find that interest is compounded on a monthly basis. Taking compounding into account, what is the effective annual rate of interest on the BigBox credit card? Take your answer out to 2 decimal places. a. Effective Rate = 17.75% b. Effective Rate = 12.97% C. Effective Rate = 21.27% d. Effective Rate = 19.27% QUESTION 12 You just received your new NotSoBigBox credit card. Your effective annual rate of interest on the card is 24.33%. Interest is being compounded on a monthly basis. Based on this data, what is the Annual Percentage Rate or the APR? Round your answer to the nearest 2 decimal places. a. APR = 24.33% O b. APR = 21.97% OC. APR = 18.75% d. APR = 22.97%