Solve the following practical MCQs and highlight the correct answer in Green.

(1 mark each)

1.Find the present value of $400 to be received 12 years from today if the interest rate is 2 per cent.

a.$ 315.4

b.$ 316.7

c.$ 333.04

d.$ 344.13

2.Find the future value at the end of 4 years of $800 invested today at an interest rate of 20 per cent.

a.$ 1657.29

b.$ 1658.88

c.$ 1666.92

d.$ 1677.87

3.Find the present value of an annuity of $600 per year for 11 years if the interest rate is 1 per cent.

a.$6218.61

b.$6220.58

c.$6223.08

d.$6238.25

4.Find the present value of the following cash flow stream if the interest rate is 5 per cent.

a.$1748.89

b.$1758.53

c.$1760.53

d.$1771.37