Reference no: EM132672509

Problem 1: What is the present value of a $250 deposit in year 1, and another $50 deposit at the end of year 6 if interest rates are 10 percent?

Option 1: $120.00

Option 2: $255.50

Option 3: $278.22

Option 4: $169.34

Problem 2: If the future value of an ordinary, 7-year annuity is $10,000 and interest rates are 4 percent, what is the future value of the same annuity due?

Option 1: $10,400.00

Option 2: $10,000.00

Option 3: $9,615.38

Option 4: $10,700.00

Problem 3: Last year Rain Repel Corporation had an ROA of 5 percent and a dividend payout ratio of 90 percent. What is the internal growth rate?

Option 1: 4.75 percent

Option 2: 52.63 percent

Option 3: 0.50 percent

Option 4: 50.00 percent