Exam # 02 - Chapters 5, 6, 2 28 points eBook Ask Mc TB MC Qu. 06-01 Which one of the following statements... Which one of the following statements correctly defines a time value of money relationship? Graw Hill Type here to search Multiple Choice Time and future values are inversely related, all else held constant. Interest rates and time are positively related, all else held constant. An increase in a positive discount rate increases the present value. An increase in time increases the future value given a zero rate of interest. Time and present value are inversely related, all else held constant. Save < Prev 28 of 38 DOLL 29 bolnts Problem 6-8 Calculating Annuity Values [LO1] You want to have $82,000 in your savings account 13 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 7.30 percent interest, what amount must you deposit each year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) eBook Annual deposit Ask Mc Graw Hill Type here to search W < Prev https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fcon Exam # 02 - Chapters 5, 6, 7 i 30 2 points Problem 5-12 Calculating Future Values [LO1] Your coin collection contains 41 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2051, assuming they appreciate at an annual rate of 6 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) eBook Mc Graw Hill Future value Type here to search Sa < Prev 30 of 2 - Chapters 5, 6, 7 i Saved Help Save & Exit TB MC Qu. 06-04 You are comparing two investment options... You are comparing two investment options that each pay 6 percent interest compounded annually. Both options will provide you with $12,000 of income. Option A pays $2,000 the first year followed by two annual payments of $5,000 each. Option B pays three annual payments of $4,000 each. Which one of the following statements is correct given these two investment options? Assume a positive discount rate. (No calculations needed.) to search Multiple Choice Both options are of equal value since they both provide $12,000 of income. O Option A has the higher future value at the end of Year 3. Option B has a higher present value at Time 0. Option 8 is a perpetuity O Option A is an annuity. < Prev 31 of 38 DELL New! Next > Windy tomorrow https://ezto.mheducation.com/ext/map/index.html?_con=con_external_browser=0&launchUrl=https%253A%2 Exam # 02 - Chapters 5, 6, 7 i 4 32 points eBook Problem 5-13 Calculating Interest Rates and Future Values [LO1, 3] In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $180. In 2019, the winner's check was $1,500,000. a. What was the percentage increase per year in the winner's check over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the winner's prize increases at the same rate, what will it be in 2048? (Do not 32.16.) round intermediate calculations and round your answer to 2 decimal places, e.g., Ask Mc Graw H a. Increase per year b. Winners prize in 2048 % Type here to search 05 W < Prev ps://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F% 2 - Chapters 5, 6, 7 i K H Problem 7-7 Bond Yields [LO2] Ashburn Corporation issued 10-year bonds two years ago at a coupon rate of 8.7 percent. The bonds make semiannual payments. If these bonds currently sell for 108 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM % 2 < Prev