Q1. An annuity will pay eight annual payments of $100, with the first payment to be received three years from now. If the interest rate is 12% per year, what is the present value of this annuity? The present value of: A) a lump sum discounted for 2 years, where the lump sum is the present value of an ordinary annuity of 8 periods at 12%. B) a lump sum discounted for 3 years, where the lump sum is the present value of an ordinary annuity of 8 periods at 12%. C) an ordinary annuity of 8 periods at 12%. Q2. If 10 equal annual deposits of $1,000 are made into an investment account earning 9% starting today, how much will you have in 20 years? A) $35,967. B) $42,165. C) $39,204. Q3. Bill Jones is creating a charitable trust to provide six annual payments of $20,000 each, beginning next year. How much must Jones set aside now at 10% interest compounded annually to meet the required disbursements? A) $87,105.21. B) $154,312.20. C) $95,815.74. Q4. What is the present value of a 12-year annuity due that pays $5,000 per year, given a discount rate of 7.5%? A) $36,577. B) $41,577. C) $38,676. Q5. Consider a 10-year annuity that promises to pay out $10,000 per year; given this is an ordinary annuity and that an investor can earn 10% on her money, the future value of this annuity, at the end of 10 years, would be: A) $175,312. B) $159,374. C) $110.000.
[此贴子已经被作者于2008-12-29 17:04:23编辑过] | 
发表于 2008-12-29 16:45
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