# Forever Furniture has a “Don’t Pay For One Year” event on right now at the store, so you purchase an Italian hand-stitched leather sofa. You will…

15. Forever Furniture has a “Don’t Pay For One Year” event on right now at the store, so you purchase an Italian

hand-stitched leather sofa. You will pay \$1,369 for the sofa in one year. Forever Furniture charges 18.0%

annual interest compounded monthly on overdue payments. If you forget and don’t pay for the sofa until 6

months after payment is due, how much will you pay for the sofa at that time if interest charges begin on the

first day after the year is over?

A. \$1,436

B. \$1,475

C. \$1,492

D. \$1,497

E. \$1,505

16. Four years ago, Penny invested \$7,500 and locked in a 4.25 percent annual interest rate for 24 years (end 20

years from now). Leonard can make a twenty year investment today and lock in a 5.65 percent interest rate.

How much money should he invest now in order to have the same amount of money in 20 years as Penny?

A. \$6,728

B. \$6,784

C. \$6,816

D. \$7,072

E. \$7,351

17. Your current investment will mature in 2 years for \$20,000, at which time you will reinvest the funds for 12

more years at 5.85% per year. What will be the value of your investment at the end of the 14th year?

A. \$35,313

B. \$37,154

C \$39,566

D. \$41,986

E. \$44,330

18. \$1,500 is received at the beginning of year 1, \$2,200 is received at the beginning of year 2, and \$3,300 is

received at the beginning of year 3. If these cash flows are deposited at 9.75 percent, their combined future

value at the end of year 3 is:

A. \$8,255

B. \$8,348

C. \$8,432

D. \$8,659

E. \$9,254

19. You are scheduled to receive a \$7,500 cash flow in two years, pay a \$2,500 payment in three years receive

a \$12,750 cash flow in four years, and pay a \$4,250 payment in five years. If interest rates are 4.75% per

year, what is the combined present value of these cash flows?

A. \$10,263

B. \$11,880

C. \$11,997

D. \$12,175

E. \$12,444

20 How many years will it take \$100,000 to grow to \$350,000 with an annual interest rate of 7.25 percent?

(Hint: See Footnote 4 on page 94; ln = natural log)

A. 15 years, 3 months

B. 15 years, 8 months

C. 16 years, 4 months

D. 17 years, 2 months

E. 17 years, 11 months

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.