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Reading 5: The Time Value of Money- LOS d, (Part 2)~ Q9-10

Q9. If $2,000 a year is invested at the end of each of the next 45 years in a retirement account yielding 8.5%, how much will an investor have at retirement 45 years from today?

A)   $901,060.

B)   $100,135.

C)   $90,106.

Q10. An investor wants to receive $1,000 at the beginning of each of the next ten years with the first payment starting today. If the investor can earn 10 percent interest, what must the investor put into the account today in order to receive this $1,000 cash flow stream?

A)   $6,145.

B)   $7,145.

C)   $6,759.

ss

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d

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ca

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thx

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the same!

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  thanks

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thanks

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thanks

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thanks

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