Question 7 (1 point)

Suppose you invest $50,000 at 8% interest for 7 years. How much money will you have after 7 years?

Question 7 options:

	80,000
	85,691.21
	65,938.33
	87,128.39

Question 8 (1 point)

Suppose you invest $5,000 at 1% interest for 20 years. How much money will you have after 20 years?

Question 8 options:

	25,239.14
	77,001.39
	55,000
	6,100.95

Question 9 (1 point)

What is the present value of $100,000 in 10 years, using a discount rate of 2%?

Question 9 options:

	95,220.84
	82,034.83
	77,003.28
	73,495.47

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Question 10 (1 point)

Suppose you could purchase an investment today that pays $1,000,000 in ten years. Using a discount rate of 4%, what is the maximum price you would want to pay for this investment today?

Question 10 options:

	675,564
	485,997
	675,001
	575,564

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Question 11 (1 point)

You are evaluating an investment that costs $50,000 today and pays $30,000 after one year and $30,000 after two years. Using a discount rate of 5%, what is the present value of this investment? (Take the present value of all the revenues and subtract the present value of all the costs). Is it a profitable investment?

Note that a negative number is indicated by the brackets " ( )".

Question 11 options:

	The present value is ($5,302.11), and it is a profitable investment.
	The present value is $55,782.31, and it is a profitable investment.
	The present value is $5,782.31, and it is a profitable investment.
	The present value is $55,782.31, and it is not a profitable investment.