CFIN300 Midterm Exam Fall 2007
24.Your older sister deposited $5,000 today at 8% per year compounded annually for five years. You would like to have just as much money at the end of the next five years as your sister. However, you can only earn 6% per year compounded annually. How much more money must you deposit today than your sister if you are to have the same amountat the end of five years?
25.Net income differs from operating cash flow due to the handling of:
26.Shirley adds $1,000 to her savings on the last day of each month. Shawn adds $1,000 to his savings on the first day of each month. They both earn an 8% per year compounded quarterly rate of return. What is the difference in their savings account balances at the end of 35 years?A)$13,923.34B)$15,794.64C)$16,776.34D)$14,996.47E)$12,846.88