You are looking at an investment that will pay $1,000 in 3 years if you invest $600 today. What is the implied annual rate of interest? A) 22.22% B) 20.12% C) 12.68% C) 18.56% The present value refers to: A) the value of a project; B) Today's worth of a project; C) the book value of a project; D) the market value of a project. The present value of a project is: A) the same for all investors; B) different for different investors; C) higher than what investors expect; D) lower than what investors expect. Rob and Laura with to buy a new home. The price is $187, 500 and they plan to put 20% down. New Rochelle Savings and Loan will lend them the remainder at a 10% fixed rate for 30 years, with monthly payments to begin in one month. Ignore taxes. How much will their monthly payments be? a. $1, 512.56 b. $1, 325.99 c. $1, 316.36 d. $1, 645.45 The time value of money means that: A) One dollar today is worth more than one dollar in the future. B) cash flows occurring at different points in time are not directly comparable. C) there is a difference between the present value and the future value; D) all of the above. A couple thinking about retirement decide to put aside $2,000 cash year in a savings plane that earns 3% interest. How much will they have accumulated 40 years from now? A) $80,000 B) $150, 803 C) $82, 400 D) $125, 602