18.If the real rate is 4%and the rate of inflation is 6%,what is the nominal rate? a)8.16% b)10.16% c)10.24% d)10.36% Answer:(c) 19.You have an investment opportunity with a nominal rate of 6%compounded daily.If you want to have $100.000 in your investment account in 15 years,how much should you deposit today,to the nearest dollar? a.$43,233 b.$41,727 C. $40,930 d.$40,660 Answer:(d) 20.You have determined the present value of an expected cash inflow stream.Which of the following would cause the stream to have a higher present value? a)The discount rate increases. b)The cash flows are paid over a shorter period of time. c)The discount rate decreases. d)Statements(b)and(c)are both correct. Answer:(d) 4-54-5 18. If the real rate is 4% and the rate of inflation is 6%, what is the nominal rate? a) 8.16% b) 10.16% c) 10.24% d) 10.36% Answer: (c) 19. You have an investment opportunity with a nominal rate of 6% compounded daily. If you want to have $100,000 in your investment account in 15 years, how much should you deposit today, to the nearest dollar? a. $43,233 b. $41,727 c. $40,930 d. $40,660 Answer: (d) 20. You have determined the present value of an expected cash inflow stream. Which of the following would cause the stream to have a higher present value? a) The discount rate increases. b) The cash flows are paid over a shorter period of time. c) The discount rate decreases. d) Statements (b) and (c) are both correct. Answer: (d)