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rockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior 5 years was 7.6% per year. If that growth

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rockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior 5 years was 7.6% per year. If that growth rate were maintained, how many years would it take for Brockman's EPS to triple? Select the correct answer. O a. 16.80 O b. 13.20 O c. 15.00 10 d. 11.40 our friend offers to pay you an annuity of $5,900 at the end of each year for 3 Fears in return for cash today. You could earn 5.5% on your money in other nvestments with equal risk. What is the most you should pay for the annuity? Select the correct answer, O a. $15,917.81 b. $15,923.71 c. $15,929.61 d. $15,941.41 O O A new investment opportunity for you is an annuity that pays $3,750 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Select the correct answer. O a. $10,646.50 b. $10,687.30 c. $10,673.70 d. $10,632.90 O 1 Suppose you earned a $515,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years? Select the correct answer. O O O a. $53,423.50 b. $53,453.50 c. $53,443.50 d. $53,433.50 e. $53,413.50 Your girlfriend just won the Florida lottery. She has the choice of $11,000,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity? Select the correct answer. O a. 5.94% O b. 6.54% c. 7.74% O d. 7.14% O e. 8.34% What's the present value of $1,875 discounted back 5 years if the appropriate interest rate is 6%, compounded monthly? Select the correct answer. OOOO a. $1,395.97 b. $1,401.87 C. $1,378.27 d. $1,384.17 e. $1,390.07 01 of 10 Suppose your credit card issuer states that it charges a 20.25% nominal annual rate, but you must make monthly payments, which amounts to monthly compounding. What is the effective annual rate? Select the correct answer. O a. 21.64% O b. 22.54% c. 22.24% d. 22.84% O e. 21.94% Billy Thornton borrowed $95,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month? Select the correct answer. a. $578.16 b. $571.86 c. $576.06 d. $573.96 e. $569.76

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