Question $1(5$ points$)$

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You plan to invest $$1,200$ at the end of year $1,$ $$2,200$ at the end of year $2,$ and $$3,500$ at the end of year $3.$

If you can earn $5\mathrm{.}00\%,$ compounded annually, how much you will have in your account by the end of the $3$rd year.

$($Round your answer to the nearest hundredth; two decimal places$)$

Your Answer:

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Question $2(5$ points$)$

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You are considering an investment opportunity that yields $$520$ one year from today, $$840$ in two years, and $$1,400$ in three years.

What is the present value of these cash inflows if your opportunity cost is $7\%?$

$($Round your answer to the nearest hundredth; two decimal places$)$

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Question $3(5$ points$)$

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You are considering the purchase of a $$50,500$ Ford F$-150$ Raptor. If you are financing the truck for $72$ months and the auto loan annual rate is $3\mathrm{.}5\%,$ what is your monthly car payment?

$($Round your answer to the nearest hundredth; two decimal places$)$

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Question $4(5$ points$)$

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You learned that XYZ$,$ Inc. has a bond with $$1,000$ face value. The bond carries a $9\%$ coupon, paid semiannually, and matures in $11$ years.

What is the fair market value of the bond if the yield to maturity is only $7\%?$

$($Round your answer to the nearest hundredth; two decimal places$)$

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Question $4$ options:

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Question $5(5$ points$)$

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In a certain year, if your return on investment is $4\mathrm{.}40\%$ and the inflation rate during that same year is $1\mathrm{.}00\%,$ what is your real rate of return?

$($Use two decimal places when solving this problem$)$

Your Answer:

Question $5$ options:

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