If $15 000 is invested at 10% per year, in approximately how many years will the investment double?

Which of the following statements regarding perpetuities is FALSE?

A lottery winner will receive $1 million at the end of each of the next ten years. What is the present value (PV) of her winnings at the time of her final payment, given that the interest rate is 8.75% per year?

What is the present value (PV) of an investment that will pay $400 in one year's time, and $400 every year after that, when the interest rate is 5%?

Ally wishes to leave a provision in her will that $2 000 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 6%?

Stella deposits $5 000 in a savings account at a bank that offers interest of 5.5% on such accounts. What is the value of the money in her savings account in one year's time?

A risk-free, zero-coupon bond has 15 years to maturity. Which of the following is closest to the price per $100 of face value that the bond will trade at if the YTM is 7%?

Prior to its maturity date, the price of a zero-coupon bond is its face value

An elderly relative offers to sell you their used 1959 Jaguar Mark 9 saloon for $50 000. You note that very similar cars are selling on the open market for $90 000. You don't care for classic cars and would rather buy a new Subaru Outback available to you for $35 000. What is the net value of buying the Jaguar?

A corporate bond makes payments of $10.50 every month for 10 years with a final payment of $2 010.50. Which of the following best describes this bond?