The furniture store offers you no-money down on a new set of living room furniture. Further, you may pay for the furniture in 3 equal annual end of the year payments of $1,000 each with the first payment to me made 1 year from today. If the discount rate is 6%, what is the present value of the furniture payments? Question 1 options: A) $3183.60 B) $3000.00 C) $2,833.39 D) $2,673.01 Question 2 (3.3333 points) Question 2 Saved Your company just sold a product with the following payment plan: $50,000 today, $25,000 next yesar and $10,000 the following year. If your firm places the payments into an account earning 10% per year, how much money will be in the account after collecting the last payment? Question 2 options: A) $99,000 B) $98,000 C) $88,500 D) $85,000 Question 3 (3.3333 points) Question 3 Saved You are saving money for a down payment on a new home. You intend to place $5,000 at the end of each year for 3 years into an account earning 6% per year. At the end of the fourth year, you will place $10,000 into this account. How much money will be in the account at the end of the 4th year? Question 3 options: A) $26,873.08 B) $26,518.17 C) $25,918.00 D) $25,000.00 Question 4 (3.3333 points) Question 4 Saved A/An _______ is a series of equal end of the year cash flows. Question 4 options: A) ordinary annuity B) annuity due C) perpetuity due D) ordinary perpetuity Question 5 (3.3333 points) Question 5 Unsaved Which is greater, the present value of a $1,000 5-year ordinary annuity discounted at 10%, or the present value of a $1,000 5-year annuity due discounted at 10%? Question 5 options: A) The ordianry annuity is worth more with a present value of $3,790.79 B) The annuity due is worth more with a present value of $4,169.87 C) The ordinary annuity is worth more with a present value of $4,169.87 D) none of the above Question 6 (3.3333 points) Question 6 Unsaved You just won the lottery! Your parents have already told you to plan for the future, so since you already have a well-paying job you decide to invest rather than spend you lottery winnings. The payment schedule of exactly $100,000 after taxes in equal annual end-of-year installments into your account paying 7% compounded annually. How much money will be in your account after the last deposit is made? Question 6 options: A) $2,000,000.00 B) $3,637,896.48 C) $4,099,549.23 D) $4,486,517.68 Question 7 (3.3333 points) Question 7 Unsaved What is thre future value in year 12 of an ordinary annuity cash flow of $6,000 per year at an interest rate of 4% per year. Question 7 options: A) $90,154.83 B) $93,761.02 C) $28,675.97 D) $32,117.08 Question 8 (3.3333 points) Question 8 Unsaved If for the next 40 years you place $3,000 in equal year-end deposits into an account earning 8% per year, how much money will be in the account at the end of that time period? Question 8 options: $120,000.00 $777,169.56 $839,343.12 $2,606,942.58 Question 9 (3.3333 points) Question 9 Saved Your employer has agreed to place year-end deposits of $1,000, $2,000 and $3,000 into your retirement account. The $1,000 will be one year from today. If your account earns 5% per year, how much money will you have in the account at the end of year 3 when the last deposit is made? Question 9 options: A) $5,357.95 B) $6,000 C) $6,202.50 D) $6,727.88 Question 10 (3.3333 points) Question 10 Unsaved Johnson has an annuity due that pays $600 per year for 15 years. What is the value of the cash flows 15 years from today if they are placed in an account that earns 7.5%. Question 10 options: A) $9,000.00 B) $9,675.00 C) $15,671.02 D) $16,846.35 Quiz 2 Chapter 5 Question 11 (3.3333 points) Question 11 Saved Suppose you postpone consumption and invest at 9% when the inflation rate is 3%, What is the approximate real rate on your reward for saving? Question 11 options: 2% 3% 5% 6% Question 12 (3.3333 points) Question 12 Unsaved Assume that you are willing to postpone consumption today and buy a certificate of deposit…

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