1. What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 4%?
a) $21,899.42
b) $24,625.42
c) $17,705.88
d) $17,909.40
e) $20,351.59
2. Companies raise needed capital typically by issuing bonds rather than selling stocks.
a) True
b) False
3. What is the PV of an annuity due with 10 payments of $2,700 if the appropriate interest rate is 6%?
a) $21,899.42
b) $21,064.57
c) $22,775.40
d) $17,909.40
e) $20,351.59