/
/
/
81.A \$200 investment in an account that pays 7% continuous
Not my Question
Flag Content

# Question : 81.A \$200 investment in an account that pays 7% continuous : 1404023

81.A \$200 investment in an account that pays 7% continuous interest would be worth how much in twenty years?

a.\$774

b.\$792

c.\$811

d.\$819

82.If you invest \$5,000 in a mutual fund with a total annual return (interest rate) of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years?

a.\$3,402.92

b.\$6,597.08

c.\$7,000.00

d.\$7,346.64

83.You buy a house for \$220,000 in a neighborhood where home prices have risen 5% annually on average. You suspect that growth in home prices will slow to an average of 3.5% per year over the next five years. If your growth estimate of 3.5% growth is correct, how much less will your house be worth in five years compared with 5% growth?

a.\$3,300.00

b.\$16,500.00

c.\$19,490.95

d.\$13,870.51

84.You inherit \$15,000 from your aunt. You decide to invest the money in a three-year CD that pays 4% interest to use as a down payment on a house. How much money will you have when the CD matures?

a.\$13,334.95

b.\$15,600.00

c.\$16,800.00

d.\$16,872.96

85.If you need \$35,000 for a down payment on a house in six years, how much money must you invest today at 7% interest compounded annually to achieve your goal?

a.\$14,700.00

b.\$20,300.00

c.\$23,321.98

d.\$24,954.52

86.Your firm is evaluating a project that should generate revenue of \$4,600 in year 1, \$5,200 in year two, \$5,900 in year three, and \$5,700 in year four. The firm receives each cash flow at the end of each year. If your firm's required return is 12%, what is the future value of these cash flows at the end of year four?

a.\$16,074.51

b.\$22,583.53

c.\$25,293.55

d.\$28,328.77

87.If you deposit \$9,000 at the end of each year in an account earning 8% interest, what will be the value of the account in 25 years?

a.\$600,882.83

b.\$657,953.46

c.\$710,589.74

d.\$719,589.74

88.You would like to retire with \$1 million on your 60th birthday. If you start saving equal annual amounts on your 26th birthday, make your last deposit on your 60th birthday, and earn 10% interest on your money, how much must you invest each year to achieve your goal?

a.\$3,343.06

b.\$3,436.14

c.\$3,558.41

d.\$3,689.71

89.If you deposit \$9,000 at the BEGINNING of each year in an account earning 8% interest, what will be the value of the account in 25 years?

a.\$609,216.17

b.\$657,953.46

c.\$710,589.74

d.\$774,823.46

90.A report from the marketing department indicates that a new product will generate the following revenue stream: \$62,500 in the first year, \$89,400 in year two, \$136,200 in year three, \$128,300 in year four, and \$112,000 in year five. If your firm's discount rate is 11% and the cash flows are received at the end of each year, what is the present value of this cash flow stream?

a.\$379,435.35

b.\$421,173.24

c.\$476,036.04

d.\$528,400.00

## Solution 5 (1 Ratings )

Solved
Finance 1 Year Ago 45 Views