Question 1 - Question 1 10 out of 10 points Present and...

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Question 1 10 out of 10 points Present and future value tables of $1 at 3% are presented below: Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $50,000 five years from now. How much must Carol deposit to accomplish her goal? Answer Selected Answer: $37,205. Correct Answer: $37,205. Response Feedback: PV = $50,000 x .744409* = $37,205 *PV of $1: n = 10; i = 3% Question 2 10 out of 10 points Present and future value tables of $1 at 3% are presented below: At the end of the next four years, a new machine is expected to generate net cash
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flows of $8,000, $12,000, $10,000, and $15,000, respectively. What are the (rounded) cash flows worth today if a 3% interest rate properly reflects the time value of money in this situation? Answer Selected Answer: $41,556. Correct Answer: $41,556. Response Feedback: ($8,000 x .97087) + ($12,000 x .94260) + ($10,000 x .91514) + ($15,000 x .88849) = $7,767 + 11,311 + 9,151 + 13,327 = $41,556 Question 3 10 out of 10 points Present and future value tables of $1 at 3% are presented below: At the end of each quarter, Patti deposits $500 into an account that pays 12% interest compounded quarterly. How much will Patti have in the account in three years? Answer Selected Answer: $7,096. Correct Answer:
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$7,096. Response Feedback: FVA = $500 x 14.1920* = $7,096 *FVA of $1: n = 12; i = 3% Question 4 10 out of 10 points Present and future value tables of $1 at 3% are presented below: Rosie's Florist borrows $300,000 to be paid off in six years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment? Answer Selected Answer: $30,139. Correct Answer: $30,139. Response Feedback: $300,000 ÷ 9.95400* = *PVA of $1: n = 12; i = 3% Question 5 10 out of 10 points Debbie has $368,882 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The withdrawals will
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take place annually starting today. How soon will the fund be exhausted if Debbie withdraws $30,000 each year? Answer Selected Answer: 15 years. Correct Answer: 15 years. Response Feedback: $368,882 ÷ $30,000 = 12.29607 For PVAD of $1 factor of 12.29607 and i of 3%, n = 15 Question 6 10 out of 10 points Present and future value tables of $1 at 3% are presented below: Jose wants to cash in his winning lottery ticket. He can either receive five, $5,000 annual payments starting today, or he can receive a lump-sum payment now based on a 3% annual interest rate. What would be the lump-sum payment? Answer Selected Answer: $23,586. Correct Answer:
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$23,586. Response Feedback: PVAD = $5,000 x 4.71710* = $23,586 *PVAD of $1: n = 5; i = 3% Question 7 10 out of 10 points Reba wishes to know how much would be in her savings account if she deposits a given sum in an account and leaves it there at 6% interest for five years. She should use a table for the: Answer Selected Answer: Future value of 1. Correct Answer:
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Question 1 - Question 1 10 out of 10 points Present and...

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