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81.A $200 investment in an account that pays 7% continuous

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

 

 

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