TO. At what% interest rate), the $287.50 initial investment would be worth S630.01 in 14 years, compounded annually? A) 5% B) 6% C) 7% D) 8% 1. You plan to deposit $5,000 at the end of each of the next 25 years. The account pays 8% compounded annually. You plan to start to withdraw an equal amount for 20 years, following your last deposit. How much can you withdraw 2 (The twenty-fifth and last deposit is made at the beginning of the 20-year period. The first withdrawal is made at the end of the first year in the 20-year period.) A) $27,832 B) $18,276 C) 543,289 D) $37,230 18. You have a $1,000 debt on your credit card. The rate from credit card is 20% annually compounded monthly. You will make a payment of S25 each month. How long does it take to the nearest month) to pay off your debt? A) 94 months B) 41 months C) 54 months D) 79 months 19. A dozen stocks suddenly drop in value by more than 20% due to a news flash. This is an example of which of the following. A) nondiversifiable risk B) market-wide risk C) unsystematic risk D) total risk 20. Changes in interest rates, or changes in tax law, are both examples of what type of risk? A) Firm specific B) Systematic C) Unsystematic D) Diversifiable 21. Which of the following is correct with respect to diversification? A) Investing in 2 or 3 large stocks will eliminate all of the idiosyncratic risk. B) Investing in 3 companies all within the same industry will reduce most of the systematic risk. C) Investing across many diverse assets will eliminate all of the systematic risk. D) Investing across many diverse assets will eliminate some of the total risk