Question 1 (1 point) ,Question 1 options:,Marcy placed $2,700 a year into an investment returning 5 percent a year for her daughter’s college education. She started when her daughter was 2. How much did she accumulate by her daughters 18th birthday?,,(Round your answer to the nearest whole dollar. Omit the comma and "$" sign in your response.),,Save,,——————————————————————————–,Question 2 (1 point) ,Question 2 options:,Todd was asked what he would pay for an investment that offered $1,900 a year for the next 32 years. He required an 7 percent return to make that investment. What should he bid?,,(Round your answer to the nearest whole dollar. Omit the comma and "$" sign in your response.),,Save,,——————————————————————————–,Question 3 (1 point) ,Question 3 options:,Ann was offered an annuity of $20,000 a year for the rest of her life. She was 55 at the time and her life expectancy was 84. The investment would cost her $180,000. What would the return on her investment be?,,(Round your answer to the nearest 1 decimal, i.e., "7.3" "8.6" or "11.8" Omit the "%" sign in your response.),,Save,,——————————————————————————–,Question 4 (1 point) ,Question 4 options:,How many years would it take for $2,000 a year in savings earning interest at 6 percent to amount to $60,000?,,(Round your answer to the nearest whole number.),,Save,,——————————————————————————–,Question 5 (1 point) ,Question 5 options:,Aaron has $50,000 in debt outstanding with interest payable at 12 percent annual. If Aaron intends to pay off the loan through 4 years of interest and principal payment, how much should he pay annually?,,(Round your answer to the nearest whole dollar. Omit the comma and "$" sign in your response.),,Save,,——————————————————————————–,Question 6 (1 point) ,Question 6 options:,What is the difference in amount accumulated between a $10,000 sum with 12 percent interest compounded annually and one compounded monthly over one year period?,,(Round your answers to the nearest whole dollar. Omit the comma and "$" sign in your response.),,,Compounded monthly =,,,Compounded annually =,,,Difference in amounts =,,Save,,——————————————————————————–,Question 7 (2 points) ,Question 7 options:,What is the difference in future value between savings in which $3,000 is deposited each year at the beginning of the period and the same amount deposited at the end of the period? Assume an interest rate of 8 percent and that both are due at the end of 19 years. ,,Fill in your answers (L-R) in the following order:,,(a) Annuity Due (beginning of period) = ______,,(b) Ordinary Annuity (end of period) = ______,,(c) Difference between "ordinary annuity" and "annuity due" = _______,,(Round your answers to the nearest whole dollar. Omit the comma and "$" sign in your responses.),,Save,,——————————————————————————–,Question 8 (1 point) ,Question 8 options:, Kenneth made an investment with the following cash flows: ,YEAR 1 $20,000 Cash investment ,YEAR 2 $ 5,000 Cash return received ,YEAR 3 $ 8,000 Cash payment made ,YEAR 4 $20,000 Invested cash returned , 8% Required Rate of return , ,What was the net present value (NPV) of his investment? ,Note: Round your answer to the nearest whole dollar. Omit the comma and "$" sign in your response. Use "+" or "-" before the number to indicate if your final answer is positive or negative NPV. (i.e. +4599 -13667 +1500 -3220 etc.) ,Save,,——————————————————————————–,Question 9 (1 point) ,Question 9 options:,Becky made an investment with the following cash flows: ,YEAR 1 $ 30,000 Cash investment ,YEAR 2 $ 10,000 Cash return received ,YEAR 3 $ 8,000 Cash return received ,YEAR 4 $ 11,000 Cash return received ,YEAR 5 $ 9,000 Cash return received ,What was her internal rate of return over the five year period? , ,Note: Round your answer to the nearest whole decimal, i.e. "12.2" " 5.1" or "2.3". Omit the "%" sign in your response. ,%

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