5.a

5.b

5.c

5.d

You just learnt that you are going to receive $300 a year forever. In addition, this amount will increase at the rate of 5% forever. However, these payments will not begin until five years from today. What is the present value of these payments assuming a discount rate of 6%? 22,417.75 23,762.81 25,188.58 30,000.00 You want to deposit $5,000 a year starting from the end of this year until the end of the 12th year. After 12 years you realize that you only deposited $3,000 at the end of the fifth year. If the market interest rate is 6%, how much money will you have in your account at the end of the 12th year? $81,342.45 $81,512.67 $82,939.78 $83,349.71 Concerning an ordinary annuity and an annuity due with the same payments (same number of payments and dollar amount) and positive interest rate, which of the following statements is most accurate? The present value of the ordinary annuity is equal to an annuity due. The present value of the ordinary annuity is greater than an annuity due. The present value of the ordinary annuity is less than an annuity due. There is no relationship You want to buy a new house. The bank is willing to make you a 30-year loan at 8% compounded semiannually for 90% of the value of the house. The value of the house is $600,000. How much is your monthly payment? $2,240.56 $3,913.44 $3,987.33 $4,348.27