QUESTION 29 What is the interest rate of a single S20,000 cash flow in 3 years if the present value is $15,443.60? 1.8% 2.9% 3.10% QUESTION 30 Jay has made a deal with his daughter to start a car fund for when she graduates college in 6 years. He has found an investment that will yield an interest rate of 8% per year. If he wants to have $25,000 to spend on the car for his daughter, how much must he initially invest? 1. $13,772.55 2. $14,038.95 3. $15,754.28 4. $16,113.45 QUESTION 31 When bonds are sold for less than the par amount, this means that the 1. stated rate of interest is less than the yield rate of interest. 2. maturity value will be less than the par amount. 3. bonds are sold at a premium. 4. maturity value will be greater than the par amount. QUESTION 32 When a contract establishes a relationship between an amount borrowed and one or more future cash flows, the initial amount is known as 1. future value 2. present value. 3. an annuity. 4. interest rate