Rita plans to save \$1,500, \$1,500, and \$2,500 a year over the next 3 years, respectively. How much would you need to deposit in one lump sum today to...
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Rita plans to save \$1,500, \$1,500, and \$2,500 a year over the next 3 years, respectively. How much would you need to deposit in
one lump sum today to have the same amount as Rita 3 years from now if you both earn 3.5 percent, compounded annually?
A. \$5, 104.40
O B. \$4, 857.92
O C. \$6,097.95
PV = 1500/ 1.035
1500/ 1
O D. \$5,491.42
2500 / 1.053
352
QUESTION 38
A proposed 3-year project has expected annual cash inflows of \$5,600, \$7,900, and \$11,200, for Years 1 to 3, respectively. What
is the net present value of this project at a discount rate of 16 percent if the initial cost is \$7,800?
A. \$12,292.25
O B. \$10, 073.94
PV = 5600/ 1-14
O C. \$10, 713.62
13, 456, 47
7900 / 1. 162
O D. \$14, 103.18
1 1200 / 1. 16
QUESTION 39
An annuity costs \$185,000 today and provides monthly payments of \$950 for 40 years. The first payment occurs 1 month from
today. What annual rate of return does this annuity offer?
O A. 5.16%

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