Tuesday, November 12, 2019

Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month.

Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month. Both Trish and Josh will receive payments for next four years. At a 9.5 percent discount rate, what is the difference in the present value of these two sets of payments? 
 
A. 
$141.80

B. 
$151.06

C. 
$154.30

D. 
$159.08

E. 
$162.50


 

 


36.
What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding. 
 
A. 
$301,115

B. 
$306,492

C. 
$310,868

D. 
$342,908

E. 
$347,267


 


37.
What is the future value of $12,000 a year for 25 years at 12 percent interest? 
 
A. 
$878,406

B. 
$1,600,006

C. 
$1,711,414

D. 
$1,989,476

E. 
$2,021,223


 

 

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