• Please provide the answer step-by-step with formulas.

• Also, please note that picture 1 and 1a is continuation question, where as picture 2 and 5 are totally independent from each other.

• while answering picture questions, please put it as answer to picture 1, picture 2 and picture 5.

1.What is the present value of a perpetuity consisting of equal annualpayments of $150, where the first payment occurs one year from now, and the interest rate is 10% p.a.?

Select one:

a.$1513

b.$1500

c.$1465

d.$1442

2.What is the present value of an annuity consisting of 7 annual payments of $290, with the first payment to occur one year from now, if the interest rate is 6% p.a.?

Select one:

a.$1639

b.$1650

c.$1565

d.$1619

3.What is the future value of 5 annual payments of $250, with the first payment to occur one year from today, if the interest rate is 10% p.a.?

Select one:

a.$1491

b.$1578

c.$1540

d.$1526

4.If the APR is 11.8% and interest compounds quarterly, what is the value of the interest rate per compounding period?

Select one:

a.12.33%

b.11.80%

c.0.98%

d.2.95%

5.What is the present value of $4000 to be received in 7 years, if the interest rate is 8% p.a., compounding quarterly?

Select one:

a.$2280

b.$2330

c.$2297

d.$2243

6.What is the future value of $3000 invested for 5 years, if the interest rate is 7% p.a., compounding quarterly?

Select one:

a.$4192

b.$4254

c.$4205

d.$4244

7. The bank contacts the company and expresses concern that the accounts is constantly overdrawn.It recommends reducing the overdraft limit and taking out a fully-drawn advance.What do you think the value of the fully-drawn advance should be, in order to ensure that the overdraft is only used to assist with the variable component of the firm's funding requirements?

Select one:

a.$70,000

b.$80,000

c.$100,000

d.$50,000