Given: Cash flows for an investment. Year 1 2 3 Cash flow $400 500 600 700 Required: EUAC at 5% per year. Select one: a. $70.62 b. $64.80 c. $74.63 d. $49.97 4 5 -2,000

Mr. and Mrs. Lacks want to collect money for college expenses in a bank at 9% interest Q5. rate compounued monthly for their new-born daughter Henrietta. Mr. and Mrs Lacks transfer 7% and 5% of their salaries, respectively, to the savings account every month. Henrietta will go to college at her 18. Each year expense for the college is $40 000 for 5 years and the minimum accepted rate of return is 3%. Mr. Lacks expects to get raise once in every 2 years at about 8% of his salary. If monthly salary of Mrs. Lacks is $ 1500, how much money Mr. Lacks should make during the first 2 years to cover the 5-year college expenses? Ps. Raise will be applied in the first month at every second year. Yearly college expenses will be paid at the end of the year.)

9. The company buys a vehicle, n=18 first cost=60000 on 1st 7th and 14th years earning from the vehicle is 12000 and other years earnings are annual equally amount of x, i=8%, what is x that reach equilibrium on the cash flow series over the life of the vehicle?

14 Calculate the term of each annuity: Future Value Present Value Size of Payment a. $0 $8,500 $675 b. $23,500 $0 $491.25 c. $0 $962 $100 d. $85,000 $0 $2,500 Interest Rate 10.75% 8.25% 10.00% 13.00% Payment and Conversion Period 3 months 1 month 1 week 6 months Term (N) ? ? ? ?