### Question 3

1. Today, you are purchasing a \$1,093 5-year car loan at 8 percent. You will pay annually at the end of each year. What is the amount of each payment?

### Question 7

1. The ABC Company is considering a new project which will require an initial cash investment of \$15,870. The projected cash flows for years 1 through 4 are \$5,630, \$6,434, \$8,928, and \$4,501, respectively. If the appropriate discount rate is 9%, compute the NPV of the project.

Enter your answer rounded off to two decimal points. Do not enter \$ in the answer box.

### Question 8

1. If you receive \$299 at the end of each year for the first three years and \$617 at the end of each year for the next three years. What is the present value? Assume interest rate is 8%.

Hint: This is an uneven cash flow problem. Use the CF function and solve for NPV to get the answer.

Just enter the number up to 2 decimal points. Do not enter \$ in the answer box

### Question 9

1. 026:

Say, you deposit \$1,541 in a bank for 19 years. What is the amount you will have in the bank at the end of 19 years if interest of 4 % for first 5 years and interest of 8 % for the remaining years? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.

### Question 10

1. How much do you need to invest today in order to have \$12,538 at the end of 16 years if you are sure to earn an interest at the rate of 3%? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.

### Question 12

1. If you can triple your money in 24 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box..

### Question 13

1. 027:

Say, you deposit \$4,561 in a bank for 17 years. What is the amount you will have in the bank at the end of 17 years if interest of 4 % compounded monthly for first 8 years and interest of 7 % compounded quarterly for the remaining years? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.

### Question 14

1. What is the future value of \$1,860 for 7 years at 6 percent if interest is compounded semi-annually? Note: Do not enter “\$” in your answer. Simply write down the number that you get as your answer.

### Question 15

1. What is the future value of \$2,786 invested for 9 years at 8% if interest is compounded quarterly? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.

### Question 16

1. How many months it will take to grow your money from \$4,730 to \$7,028 if you can earn an interest of 5% compounded monthly? Note: Do not write “months” in your answer. Simply write the number in the answer box.

### Question 17

1. Assume interest rate of 9%. Suppose that you receive \$114,945 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.

Do not enter the symbol \$ in your answer. Simply enter the answer rounded off to two decimal points.

### Question 18

1. How much do you need to invest today in order to have \$6,756 at the end of 6 years if you are sure to earn an interest at the rate of 10%, if interest is compounded monthly? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.

### Question 19

1. What is the effective rate of 13% compounded monthly?

Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.

### Question 20

1. What should you be willing to pay in order to receive \$916 annually forever, if you require 4% per year on the investment?

Just enter the number up to 2 decimal points. Do not enter \$ in the answer box.

### Question 21

1. 023A:

If you can double your money in 7 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.

### Question 22

1. What is the future value of quarterly payments of \$795 for 14 years at 6 percent?

### Question 23

1. What is the future value of \$1,419 invested for 20 years at 7% if interest is compounded semi-annually (twice a year)? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.

### Question 24

1. How many years it will take to grow your money from \$4,615 to \$6,725 if you can earn an interest of 13% compounded quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

### Question 25

1. Assume interest rate of 8%. A company receives cash flows of \$542 at the end of year 5, \$275 at the end of year 7, and \$691 at the end of year 10. Compute the future value of this cash flow stream.

### Question 26

1. How much do you need to invest today in order to have \$683 at the end of 23 years if you are sure to earn an interest at the rate of 8%, if interest is compounded quarterly? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.

### Question 27

1. What is the future value of annual payments of \$3,598 for 19 years at 5 percent?

### Question 29

1. How many years it will take to grow your money from \$3,478 to \$6,842 if you can earn an interest of 14% compounded monthly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

### Question 30

1. What is the future value of \$4,254 invested for 12 years at 8% if interest is compounded semi-annually? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.

### Question 31

1. How many years it will take you to double your money if you can earn 5% each year, given that compounding is quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

### Question 32

1. Kelly starting setting aside funds 6 years ago to buy some new equipment for her firm. She has saved \$607 each quarter and earned an average rate of return of 5 percent. How much money does she currently have saved for this purpose?

### Question 34

1. Barrett Pharmaceuticals is considering a drug project that costs \$174,959 today and is expected to generate end-of-year annual cash flows of \$13,959, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project?

Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

### Question 35

1. In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years.

### Question 36

1. The ABC Company is considering a new project which will require an initial cash investment of \$5,474. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are \$3,514, \$3,809, \$2,905, and \$5,345, respectively. If the appropriate discount rate is 13%, compute the NPV of the project.