QUESTION 1: Assume interest rate of 12%. A company receives cash flows of $596 at the end of year 5, $238 at the end of year 7, and $542 at the end of year 10. Compute the future value of this cash flow stream.

QUESTION 2: What is the future value of annual payments of $4,149 years at 5 percent?

QUESTION 3: Barrett Pharmaceuticals is considering a drug project that costs $192,279 today and is expected to generate end-of-year annual cash flows of $13,125, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project?

Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

QUESTION 4: How much do you need to invest today in order to have $5,803 at the end of 9 years if you are sure to earn an interest at the rate of 7%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

QUESTION 5: How much do you need to invest today in order to have $2,399 at the end of 20 years if you are sure to earn an interest at the rate of 12%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

QUESTION 6: The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $14,581 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $156,868. At what interest rate would this be a fair deal? Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

QUESTION 7:

1. 026:

Say, you deposit $3,952 in a bank years. What is the amount you will have in the bank at the end of 16 years if interest of 4 % 9 years and interest of 6 % remaining years?

QUESTION 8: How many months it will take to grow your money from $4,983 to $7,359 if you can earn an interest of 12% compounded monthly? Note: Do not write "months" in your answer. Simply write the number in the answer box.

QUESTION 9: If you can double your money in 17 years, what is the implied annual rate of interest, given that compounded in quarterly? Note: give your answer in percentages. Note: Do not put % sign in your answer.

QUESTION 10: Assume interest rate of 6%. A company receives cash flows of $77,874 at the end of years 4, 5, 6, 7, and 8, and cash flows of $277,080 at the end of year 10. Compute the future value of this cash flow stream.

QUESTION 11: What is the future value of $1,670 invested years at 17% if interest is compounded semi-annually?

QUESTION 12: What is the future value of quarterly payments of $712 years at 7 percent?

QUESTION 13: What is the future value of $2,627 invested years at 6% if interest is compounded semi-annually (twice a year)?

QUESTION 14: Assume interest rate of 7%. Suppose that you receive $89,910 at the end of each year years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.

QUESTION 15:

023A:

If you can double your money in 16 years, what is the implied annual rate of interest, given that compounded semi-annually?

QUESTION 16: How many years it will take to grow your money from $3,967 to $6,090 if you can earn an interest of 13% compounded monthly? Note: Do not write "years" in your answer. Simply write the number in the answer box.

QUESTION 17: Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6th year.

QUESTION 18: Gertrude Carter and Co. has an outstanding loan that calls annual payments of $14,903 over the 10-year life of the loan. The original loan amount was $100,000 at an APR of 8 percent. How much of the third payment is interest?