Q6. What is the present value of a 10-year, $100 annual annuity due if interest rates are 0%? A) $900. B) $1,000. C) No solution. Q7. Justin Banks just won the lottery and is trying to decide between the annual cash flow payment option or the lump sum option. He can earn 8% at the bank and the annual cash flow option is $100,000/year, beginning today for 15 years. What is the annual cash flow option worth to Banks today? A) $855,947.87. B) $924,423.70. C) $1,080,000.00. Q8. If an investor puts $5,724 per year, starting at the end of the first year, in an account earning 8% and ends up accumulating $500,000, how many years did it take the investor? A) 87 years. B) 26 years. C) 27 years. | 
发表于 2008-12-29 17:12
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