QUESTION 11 You want to have $100,000 for your daughter's education 15 years from now. If you can earn 8 percent, compounded quarterly, on your savings, how much do you need to deposit today to reach your goal? (Lump sum problem) a $23.998.17 b. $24.031.87 oc $28.366.87 od $30,478.23 QUESTION 12 Which one of the following best defines an annuity? O a. A stream of increasing annual dividend payments over an infinite period of time. O b. A stream of decreasing payments occurring at regular intervals for a fixed period of time. Oc An constant stream of payments occurring at equal intervals of time. Od. A level stream of payments occurring at random intervals for an infinite period of time QUESTION 13 An annuity for which the cash flows occur at the beginning of each time period is called a(n): O a ordinary annuity. O b. beginning annuity Oc annuity due. d. perpetuity. QUESTION 14 An annuity where the cash flows continue forever is called a(n): a ordinary annuity b. annuity due oc absolute annuity d. perpetuity. QUESTION 15 The annual percentage rate is the interest rate: a that is compounded annually and equals a stated rate compounded one times per year. O b. charged per period multiplied by the number of periods of compounding per year. O per period raised to a power which equates to the number of periods per year. O d. per a stated period of time compounded such that the time period equals one year