37. The interest rate is 8 percent. What is the future value? A great. $58,471. B. $62,440. C. $67,435. __D.__ $72,435.

38. Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present value of this 20 year cash flow? Use an 11% discount rate. __Good.__ $19,033 B. $27,870 C. $32,389 D. none of these

39. Dr. J. wants to buy a Dell computer which will cost $2,788 four years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed. He can earn 7% annual return. How much should he set aside? A beneficial. $ __B.__ $ C. $ D. $

## Exactly what come back have to his money secure thus he may receive annual great things about $20,100000 for another 14 decades

40. Mr. Fish wants to build a house in 10 years. He estimates that the total cost will be $170,000. If he can put aside $10,000 at the end of each year, what rate of return must he earn in order to have the amount needed? __A.__ Between 11% and 12% B. Between 8% and 9% C. 17% D. None of these

41. The shorter the length of time between a present value and its corresponding future value, 321chat hile A. the lower the present value, relative to the future value. __B.__ the higher the present value, relative to the future value. C. the higher the interest rate used in the present-valuation. D. none of these.

42. A dollar today is worth more than a dollar to be received in the future because A. risk of nonpayment in the future. __B.__ the dollar can be invested today and earn interest. C. inflation will reduce purchasing power of a future dollar. D. None of these.

43. Mr. Darden is selling his house for $165,000. He bought it for $55,000 nine years ago. What is the annual return on his investment? A. 3% B. Between 14% and 16% __C.__ 13% D. None of these

44. Increasing the number of periods will increase all of the following except A. the present value of an annuity. __B.__ the present value of $1. C. the future value of $1. D. the future value of an annuity.

45. Joe Nautilus has $120,000 and wants to retire. A. 12% B. Between 12% and 13% __C.__ 14% D. Greater than 15%

46. You will deposit $2,000 today. It will grow for 6 years at 10% interest compounded semiannually. The annual interest rate is 8%. Your annual withdrawal will be: A. $2,340 B. $4,332 C. $797 __D.__ $1,085

## You will then withdraw money per year across the second 4 many years

47. Carol Thomas will pay out $6,000 at the end of the year 2, $8,000 at the end of year 3, and receive $10,000 at the end of year 4. With an interest rate of 13 percent, what is the net value of the payments vs. receipts in today’s dollars? A. $ 7,326. B. $10,242. C. $16,372. __D.__ $ 4,112.

48. John Doeber borrowed $125,000 to buy a house. His loan cost was 11% and he promised to repay the loan in 15 equal annual payments. How much are the annual payments? A. $3,633 B. $9,250 C. $13,113 __D.__ $17,383

49. John Doeber borrowed $125,000 to buy a house. His loan cost was 11% and he promised to repay the loan in 15 equal annual payments. What is the principal outstanding after the first loan payment? __A.__ $121,367 B. $123,088 C. $107,617 D. None of these

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