1. You deposit $4,000 on January 1, 2020: you deposit $5,000 on January 1, 2023; and you deposit $7,000 on January1, 2025. If you make 4.5% per year for the first four years, 5.5% per year for the next two years, and 6.0% per year for the next three years. How much money is in your account (to the nearest dollar) on December 31, 2028?

• $27,032
• $23,778
• $22,045
• $25,539
• None of the above.
• 2. Assume in January 1, 2020, you own a financial contract that will pay you $2,750 at the end of each year for four years with the first payment made on December 31, 2024. You need cash today and would like to sell the contract in the market. If the appropriate rate of interest for the contract risk is 3.5% for that dollar amount should you sell the contract today to the nearest dollar?
• $10,101
• $9,110
• $8,802
• $8,505
• None of the above.

1. 3. Assume it is January 1, you own a financial contract that will pay $11,000 at the end of this year, $12,000 at the end of next year, and $0 at the end of the third year and $15,000 at the end of the fourth year. You need cash today and would like to sell the contract. If the appropriate rate of the interest for the contracts risk is 2.5%. For what dollar rate should you sell the contract today (To the nearest dollar)?

• $34,426
• $35,743
• $36,248
• $32,879
• None of the above.

1. 4. On January 1, 2021 an investment sales person offers you the following opportunity:

Investment A: If you pay him $4,335, he will pay you $1,000 on December 31 each year for the five years, starting 12/31/2021 or

Investment B: If you pay him $4,545, he will pay you $1,000 on January 1^st of each year for five years starting 1/1/2021.

You determine the appropriate rate for each investment is 5%. Pick the correct statement.

• Investment A is the better option because you will increase your value by $210.00.
• Investment B is the better option because you will only decrease your value by $215.52.
• Investment A is the better option because you will only decrease your value by $5.52.
• Investment B is the better option because you will increase your value by $0.95.
• None of the above.

1. 5. An investment salesperson contacts you and offer you the following deal: if you give him $2,500 today, he will give you $800 in one year, $900 in two years and $1,000 in three years. You determine that 6% is the appropriate interest rate for the risks of the transaction. By how much is the salesperson overcharging you?

• $104.67
• $200.00
• $89.44
• $183.22
• None of the above.