5. 4. 2. of a lump sum investment at Time 0 and (2) the smaller the...

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5. 4. 2. of a lump sum investment at Time 0 and (2) the smaller the present value of a given lump sum to periods within a year, then (1) the greater the future value be received at some future date. e. Each of the statements above is correct. Sunset Package Company is financing a new hybrid delivery van with a loan of $65,000 to be repaid over a 5- year period with monthly installments of $1,445.89. What annual (nominal) interest rate is the company paying? [CH+ -1] b. 1% 5% 8% d. 10% e. 12% nx[(1+1)-1] 3. Your mother wants to invest $5,000.00 today in a bank account that pays a nominal 5.0 percent rate, compounded semiannually. She wants you to tell her the value of the investment in 5 years. Careful, when she was pregnant, it was a very hot summer and you were a very heavy baby! a. $ 2,016 b. $ 4,199 C. $ 6,381 d. $ 6,400 e. $ 8,144 payment Congratulations, you just won the lottery. OK, one of the smaller prizes, a $50.00 annuity. The first of $50 will be received at the end of this year (Year 1), and the last $50 payment will be received at the end of twenty rears (Year 20). Just as Dr. Finance suggested, you will invest each payment in an account that pays 10 percent, annually. What will the value of the account be at the end of 30 years? a. $2,864 b. $7,428 c. $8,225 e. d. $8,591 $8,725 You are considering two equally risky annuities, each of which pays $5,000 per year for 10 years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT? 5. 4. 2. of a lump sum investment at Time 0 and (2) the smaller the present value of a given lump sum to periods within a year, then (1) the greater the future value be received at some future date. e. Each of the statements above is correct. Sunset Package Company is financing a new hybrid delivery van with a loan of $65,000 to be repaid over a 5- year period with monthly installments of $1,445.89. What annual (nominal) interest rate is the company paying? [CH+ -1] b. 1% 5% 8% d. 10% e. 12% nx[(1+1)-1] 3. Your mother wants to invest $5,000.00 today in a bank account that pays a nominal 5.0 percent rate, compounded semiannually. She wants you to tell her the value of the investment in 5 years. Careful, when she was pregnant, it was a very hot summer and you were a very heavy baby! a. $ 2,016 b. $ 4,199 C. $ 6,381 d. $ 6,400 e. $ 8,144 payment Congratulations, you just won the lottery. OK, one of the smaller prizes, a $50.00 annuity. The first of $50 will be received at the end of this year (Year 1), and the last $50 payment will be received at the end of twenty rears (Year 20). Just as Dr. Finance suggested, you will invest each payment in an account that pays 10 percent, annually. What will the value of the account be at the end of 30 years? a. $2,864 b. $7,428 c. $8,225 e. d. $8,591 $8,725 You are considering two equally risky annuities, each of which pays $5,000 per year for 10 years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT?