Question

LTIPIECFİOICE. Choose the one ah mativotat best completes the statement or answers the question 12) You just purohased an annuity tat will pay you $26,500 a year for 30 years, starting today, What wasthe purcbase price if the disoount rate is 7.5 percent A) $245,621 12) B) $315,831 C) $251,409 D) $241,309 E)S312,975 13) Throe years A) 5.88 peroent B) 7.21 percent C) 9.98 percent D) 11.08 peroent E) 10.08 perceat ago, you invested $7,890. Today it is wort $10,$24.62. What rate of interest did you cam? 15) 14) You recently did your finances, and realize you can afford a monthly paysmemat of $2,860 for a house. You wll be paying taxes of $135mostand S1 15 in insurance. The curent mortgage rates are 5.9%, und most mortgages are for 30 years, so how mach of a house can you afford? A) $501,987. B) $24,331. C) $435,767. D) $482,182 E$440,033 14) 15) Today. you ean a saltery of $$5,000, What will be your ammual salexy nine years from now if you earm amu 15) raises of 3.1 paroent? A) $81,58223 B)72,392.02C) $77,895.02 D)37,122.08 ) $36,736.00 16) 16) You want to buy your dream car five years from now. Today, that car costs $65,500. You expeot the price to increase by an average of 2.8 perpent per year over the next ßive yoars. How moh will your dream car cost by the time you are ready to buy in $67,334.01 B) 58,666.67 )$73,149.90 D) $58,340.00 ) $75,198.10 17) You just reoeived an insurance settdlement offer related to an aceident you had. The offer provides you with three cboioes 17) Option A: 53,400 a month for 6 years Option B: $2,825amonth for 10 years Option C: $235,896.45 as a Jump sum payment today You can carn 6.5 percent on your investments and do not care if you pernsonally receive the funds or if they are your heirs should you die within the settlement period. Which option should you select and why is thst option j A)Option B: It has the greatest value today. B) Option C: It is all peid today C) Option B: It pays the greatest aumber of payments D) Option C: It pays the largest total amount E) Option A: It provides the Jargest monthly payment 18) Sue plans to save S6,500, $1,000, and $4,500 at ho end of each othe next three years, respectively, what will her investment account be worth at the end of the third year if she earns an annual rato ot 6.25 peroent A)511,987.50 B)$12,000.00 C)$12,592.19-D)Sİ2.778 94 E)$9,907.11 18) i) nes one o ore corvect

Answer 1

As per rules I am answering the first 4 subparts of the question

12 E

13 E

14 E

15 B

Book1 Excel Sign in AutoSa Insert Draw Page Layout Formulas Data Review View Help Tell me what you want to do Share Calibn ▼11 Paste +0 00 Conditional Format as Cell Insert Delete Format Sort & Find & Filter Select ormatting Table Styles Editing Clipboard Alignment Cells C1 3 12 -PV( 7.5%,30,-26500) Price 4. RATE(3,, 7890,10524.62) 5 13 Rate 7 14 Monthly payment towards mortgage -2860-135-115 PV(5.9%/12,30 12,-E7) Price of house = FV(3.1%,9,55000) 10 15 Future salary An Introduction to Hedge Funds 12 13 14 15 16 17 Sheet Sheet2 Sheet3 Average: 9200721855 Count: 14 Sum: 828064.7 Select destination and press ENTER or choose Paste A ENG 8:54 AM