You want to have $100,000 available in five years to make a down payment on your dream house. If you can invest your money in an account that 9.75% per year, compounded monthly, how much must you invest at the beginning of each month in order to accomplish this? (a) $1, 299.92, (b) $1, 289.45, (c) $2, 112.42, (d) $1, 249.92. Which of the following will result in the largest dollar amount of money? (a) $100,000 invested at 10% per year, pounded monthly per year, compounded annually. (b) $100,000 invested at 10% per year, pounded monthly per year, compounded quarterly. (c) $100,000 invested at 10% per year, compounded monthly. (d) $100,000 invested at 10% per year, pounded monthly per year, compounded semiannually. When several alternative investment proposals of the same amount are being considered, the one with the largest net present value is the most desirable. If the alternative proposals involve different amount of investment it is useful to prepare a relative ranking of the proposals by using a(n): (a) Present value index, (b) Internal rate of return, (c) Payback period. (d) Average rate of return. The present value index is compound using which of the following formulas? (a) Investment Amount/Average Rate of Return on Investment. (b) Total Present Value of Net Cash Flows/Investment Amount. (c) Investment Amount/Total Present value of Net Cash Flows. (d) Total Present value of Net cash Flows/Average Rate of Return on Investment