A small craft store located in a kiosk expects to generate annual cash flows of $6,800 for the next three years. At the end of the three years, the business is expected to be sold for $15,000. What is the value of this business at a discount rate of 15 percent?

$30,100.07

$29,408.27

$25,388.67

$17,409.09

$19,477.67

A trust has been established to fund scholarships in perpetuity. The next annual distribution will be $1,200 and future payments will increase by 3 percent per year. What is the value of this trust at a discount rate of 7.4 percent?

$17,189.19

$19,960.00

$27,272.73

$24,609.11

$30,388.18

Starting today, Alicia is going to contribute $100 a month to her retirement account. Her employer matches her contribution by 50 percent. If these contributions remain constant, and she earns a monthly rate of .55 percent, how much will her savings be worth 40 years from now?

$399,459.44

$300,456.74

$349,981.21

$299,189.16

$354,087.88

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. You currently have no retirement savings but plan to save an equal amount each year for the next 38 years until your retirement. How much do you need to save each year if you can earn 7.5 percent on your savings?

$3,333.33

$2,640.85

$3,146.32

$2,889.04

$3,406.16

Wilt has a consulting contract with a firm that states that he will receive annual payments of $50,000 a year for five years with the first payment due today. What is the current value of this contract if the discount rate is 8.4 percent?

$214,142.50

$201,867.47

$195,618.19

$197,548.43

$224,267.10

Assume mortgage rates increase to 7.5 percent and you borrow $329,000 for 30 years to purchase a house. What will your loan balance be at the end of the first 15 years of payments?

$238,854.07

$194,311.64

$248,153.73

$207,308.09

$192,938.72