# Time Value of Money and Positive Rate Assignment

Words: 353

Bal. Your grandmother invested one lump sum 17 years ago at 4. 25 percent interest. Today, she gave you the proceeds of that investment which totaled \$5,539. 92. How much did your grandmother originally invest? A. B. D. E. \$2,700. 00 \$2,730. 30 \$2,750. 00 \$2,768. 40 \$2,774. 90 Forty years ago, your father invested \$2,500. Today that investment is worth \$107,921. What is the average rate of return your father earned on his investment? 8. 50 percent 9. 33 percent 9. 50 percent 9. 87 percent 9. 99 percent

An annuity stream of cash flow payments is a set of: level cash flows occurring each time period for a fixed length of time. Level cash flows occurring each time period forever. . Increasing cash flows occurring each time period for a fixed length of time. D. Increasing cash flows occurring each time period forever. E. Arbitrary cash flows occurring each time period for no more than 10 years. An annuity stream where the payments occur forever is called a(n): annuity due. Indemnity. Perpetuity. Amortized cash flow stream. Amortization table.