43. What is the present value of the following cash flow streamat a rate of 6.25%? Years: XXXXXXXXXX.gif”> | | | | |CFs: $0 $75 $225 $0 $300 a. $411.57b. $433.23c. $456.03d. $480.03e. $505.30...


43. What is the present value of the following cash flow stream at a rate of 6.25%?


Years: 0 1 2 3 4 .gif”> | | | | | CFs: $0 $75 $225 $0 $300


a. $411.57 b. $433.23 c. $456.03 d. $480.03 e. $505.30


44. What is the present value of the following cash flow stream at a rate of 12.0%?


Years: 0 1 2 3 4 .gif”> | | | | | CFs: $0 $1,500 $3,000 $4,500 $6,000


a. $9,699 b. $10,210 c. $10,747 d. $11,284 e. $11,849


.


45. What is the present value of the following cash flow stream at a rate of 8.0%?


Years: 0 1 2 3 .gif”> | | | | CFs: $750 $2,450 $3,175 $4,400


a. $7,917 b. $8,333 c. $8,772 d. $9,233 e. $9,695


46. You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 6.0%?


Years: 0 1 2 3 4 .gif”> | | | | | CFs: $0 $1,000 $2,000 $2,000 $2,000


a. $5,987 b. $6,286 c. $6,600 d. $6,930 e. $7,277


I/ 47. At a rate of 6.5%, what is the future value of the following cash flow stream?


Years: 0 1 2 3 4 .gif”> | | | | | CFs: $0 $75 $225 $0 $300


a. $526.01 b. $553.69 c. $582.83 d. $613.51 e. $645.80


48. Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year. What is the expected rate of return on this investment?


a. 6.77% b. 7.13% c. 7.50% d. 7.88% e. 8.27%


49. You are offered a chance to buy an asset for $7,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset?


a. 4.93% b. 5.19% c. 5.46% d. 5.75% e. 6.05%


50. What’s the future value of $1,500 after 5 years if the appropriate interest rate is 6%, compounded semiannually?


a. $1,819 b. $1,915 c. $2,016 d. $2,117 e. $2,223


51. What’s the present value of $4,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually?


a. $3,089 b. $3,251 c. $3,422 d. $3,602 e. $3,782


52. What’s the future value of $1,200 after 5 years if the appropriate interest rate is 6%, compounded monthly?


a. $1,537.69 b. $1,618.62 c. $1,699.55 d. $1,784.53 e. $1,873.76

Nov 11, 2021
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