Question : 21) $100 received at the beginning of year 1, $200 : 1907280

21) $100 is received at the beginning of year 1, $200 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year three is: (Round to the nearest whole dollar)

A) $672 

B) $536 

C) $427  

D) $364

E) $336

22) You have some money on deposit in a bank account which pays a nominal (or quoted) rate of 8.0944 percent, but with interest compounded daily (using a 365 day year). Your friend owns a security which calls for the payment of $10,000 after 27 months. The security is just as safe as your bank deposit, and your friend offers to sell it to you for $8,000. If you buy the security, by how much will the effective annual rate of return on your investment change?

A) 1.87%  

B) 1.53%   

C) 2.00%  

D) 0.96%  

E) 0.44%

23) If $100 is placed in an account that earns a nominal 4%, compounded quarterly, what will it be worth in 5 years?

A) $122.02  

B) $105.10  

C) $135.41  

D) $120.90  

E) $117.48

24) When you turned 20, you deposited $1,500 into an account paying interest that is compounded quarterly. You just turned 30, and there is now $2,233.30 in the account. What nominal annual interest rate is the account paying?

A) 1.00%   

B) 4.00%  

C) 4.06%  

D) 16.24%  

E) 3.75%

25) A firm's stock price is $25 per share and is expected to grow at a 5% compound annual rate. What should the stock price per share be in five years?

A) $26.25  

B) $125.00  

C) $75.00   

D) $31.91  

E) $69.66

26) Casey has $1,000 to invest and would like to buy a $3,000 jet-ski in four years. If interest is compounded annually, what interest rate will she have to receive to reach her goal?

A) 300%

B) 16%

C) 32%

D) 3%

E) 7%

27) If a US Saving bond can be purchased for $29.50 and has a maturity value at the end of 25 years of $100, what is the annual rate of return on the bond?

A) 5 percent  

B) 6 percent  

C) 7 percent  

D) 8 percent

E) 4 percent

28) If a United States saving bond can be purchased for $14.60 and has a maturity value at the end of 25 years of $100, what is the annual rate of return on the bond?

A) 6 percent  

B) 7 percent   

C) 8 percent  

D) 9 percent

E) 10 percent

29) Gary has $1,400 to invest with the goal of having $4,000 available to purchase a used car. If he can earn 12% compounded semiannually on his investment, how long will he have to wait to acquire his car?

A) Eighteen years   

B) Nine years  

C) Eighteen months  

D) Nine months  

E) Four years

30) The Vanguard Windsor II mutual fund had a net asset value of $15.07 at the beginning of 1992 and $24.04 at the beginning of 1997. What was the approximate average annual growth rate in this measure over this period? (Round to the nearest whole number)

A) 60%

B) 8%

C) 10%

D) 18%

E) 15%