# Answers4 - b 1 a b c d e d 2 a b c d e a 3 a b c d e 4 a b...

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b 1. Your grandmother invested one lump sum 17 years ago at 4.25 percent interest. Today, she gave you the proceeds of that investment which totaled \$5,539.92. How much did your grandmother originally invest? a. \$2,700.00 b. \$2,730.30 c. \$2,750.00 d. \$2,768.40 e. \$2,774.90 d 2. Forty years ago, your father invested \$2,500. Today that investment is worth \$107,921. What is the average rate of return your father earned on his investment? a. 8.50 percent b. 9.33 percent c. 9.50 percent d. 9.87 percent e. 9.99 percent a 3. An annuity stream of cash flow payments is a set of: a. level cash flows occurring each time period for a fixed length of time. b. level cash flows occurring each time period forever. c. increasing cash flows occurring each time period for a fixed length of time. d. increasing cash flows occurring each time period forever. e. arbitrary cash flows occurring each time period for no more than 10 years. c

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## This note was uploaded on 06/15/2008 for the course ACC 501 504 taught by Professor Na during the Spring '08 term at University of Texas.

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Answers4 - b 1 a b c d e d 2 a b c d e a 3 a b c d e 4 a b...

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