You deposit $10,000 in a bank and plan to keep it there for five years.The bank pays 8% annual interest compounded continuously.Calculate the future value at the end of five years.

a.$14,693

b.$15,000

c.$14,918

d.$14,500

As the discount rate increases, the present value of a given positive cash flow to be received at a particular time in the future:

a.gets closer to zero

b.gets larger without limit

c.stays unchanged

d.gets smaller without limit

Company XYZ purchased some machinery and gave a five-year note with a maturity value of $20,000.The annual discount rate is 8% and the interest is discounted monthly.How much did the company borrow?

a.$13,612

b.$13,424

c.$19,346

d.$12,000

What is the present value of a series of annuity payments of $7,000 each for 12 years made annually with an annual discount rate of 5% with the first payment starting today?

a.$3,898

b.$65,145

c.$62,043

d.$11,200

What is the present value of a series of semi-annual ordinary annuity payments of $7,000 made for 12 years, with an annual discount rate of 5%?The annuity payments are discounted semi-annually.

a.$ 65,145

b.$128,325

c.$125,195

d.$ 62,043