QUESTION 4

1. Megan bought 200 shares of stock at a price of $10 a share. She used her margin account with a 75% initial margin to make the purchase. After a year, the price of the stock is $12 a share. What is the new equity in her account?

   		$2000
   		$2400
   		$500
   		$1900

QUESTION 5

1. What is the present value of $4,000 received at the end of each year for five years if you can earn an 9% rate of return on your investments?

   		$6,154.50
   		$15,558.61
   		$2,599.73
   		$23,938.84

QUESTION 6

1. What is the present value of $2,000 received in 14 years if you can earn a 6% rate of return on your investments?

   		$884.60
   		$4521.81
   		$18,589.97
   		$42,030.13

QUESTION 7

1. Michael invests $700 a year at the end of each year in an investment with a 8% rate of return which is compounded annually. What is the future value of this investment after 12 years?

   		$277.98
   		$1,762.72
   		$13,283.99
   		$5,275.25

QUESTION 8

1. Christopher invests $800 today at a 7% rate of return which is compounded annually. What is the future value of this investment after 12 years?

   		$355.21
   		$6,354.15
   		$14,310.76
   		$1,801.75