problem 1: What would be the future value of $100 be after 5 years at 10% compound interest?
a) $161.05
b) $134.54
c) $127.84
d) $151.29
e) $143.65
problem 2: Assume a U.S. government bond promises to pay $2,249.73 three years from now. If the going interest rate on 3-year government bonds is 6%, how much is the bond worth nowadays?
a) $2,011.87
b) $2,591.45
c) $2,324.89
d) $1,888.92
e) $2,854.13
problem 3: Sims Inc. earned $1.00 per share in 2000. 5-years later, in 2005, it earned $2.00. Determine the growth rate in Sim’s earnings per share (EPS) over the 5-year period?
a) 10.82%
b) 14.87%
c) 13.61%
d) 14.28%
e) 12.17%
problem 4: Addico Corp's 2005 earnings per share were $2, and its growth rate throughout the prior 5-years was 11.0% per year. If that growth rate were maintained, how long would it take for Addico's EPS to double?
a) 6.64 years
b) 6.81 years
c) 6.99 years
d) 7.13 years
e) 7.28 years
problem 5: Determine the PV of an annuity due with 5 payments of $1,000 at an interest rate of 5%?
a) $11,110.34
b) $13,637.85
c) $12,513.68
d) $14,976.84
e) $15,349.15