Question 11 ptsWhich of the following will increase the present value of an annuity, other things equal?Flag this QuestionQuestion 21 ptsHow much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years? Assume a 2% discount rate and cash flows at the end of period.Flag this QuestionQuestion 31 ptsWhat is the Effective Annual Rate (EAR) on a deposit account with a stated Annual Percentage Rate (APR) of 12% and compounded every quarter?Flag this QuestionQuestion 41 ptsSkip to question text.Your real estate agent mentions that homes in your price range require a payment of approximately $1,000 per month over 35 years at 12% (APR) interest. What is the approximate size (present value) of the mortgage with these terms?Flag this QuestionQuestion 52 ptsSkip to question text.Your real estate agent mentions that homes in your price range require a payment of approximately $1,000 per month for 35 years (so the same # of payments as in the last question) at 12% (APR) interest. The first payment will be made at the end of the year (month 12). What is the approximate size (present value, month 0) of the mortgage?Flag this QuestionQuestion 61 ptsSkip to question text.You are offered a perpetuity of $400 a year with the first payment to be made in 3 years. If the annual interest rate is 5%, what is the present value?Flag this QuestionQuestion 71 ptsAl’s Autos has a 12% APR 84 monthly payment financing option on new $22,494 Jeep Wrangler. What is the monthly payment?Flag this QuestionQuestion 82 ptsSkip to question text.Your car lease requires a down payment of $1,500 and payments of $450 per month for 36 months. The APR is 6% compounded monthly and payments are made at the end of the month. At the end of the lease, you have the option to buy the vehicle for $20,000 (the residual value). How much is the car worth today?
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