Monthly compounding implies that interest is compounded Y times per year You have deposited $96,700 into an account that will earn an interest rate 0,8% compounded semiannually. How much will you have in this account at the end of four years? $145,695.12 $132,450.11 $158,940.13 $36,092.57 Consider the following case Swanky Beverage Co. expects the following cash flows from its manufacturing plant in Palau over the next 4 years: Annual Cash Flows $1,500,000 3,950,000 $3,750,000 $6,200,000 Year The CFO of the company believes that an appropriate annual interest rate on this investment is 4.5%. what is the present value of this uneven cash flow stream (rounded to the nearest whole dollar)? $12,591,643 $13,537,732 $17,500,000 $14,966,213 Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: Annuity Uneven Cash Flows Payments Description Tim has been donating 10% of his salary at the end of every year to charity for the last three years. His salary increased by 15% every year in the last three years. You deposit a certain equal amount of money every year into your pension fund. Andrew receives quarterly dividends from his investment in a high-dividend yield, index exchange-traded fund. Darnell borrowed some money from his friend to start a new business. He promises to pay his friend $2,650 every year for the next five years to pay off his loan along with interest Consider the following example of the application of this concept. Rajiv is a divorce attorney who practices law in Houston. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attormeys. The membership dues for the ADLA are $650 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $7,000 and never have to pay annual membership dues Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it's a great deal. Suppose that the appropriate annual interest rate is 5.9%, what is the minimum number of years that Rajiv must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $650 in annual membership dues? (Note: Round your answer up to the nearest year) O 13 years 16 years 19 years 21 years