*Saved*

What is the simple interest earned on a 1-year $

Don't use plagiarized sources. Get Your Custom Essay on

Questions

Just from $13/Page

3

00 deposit that earns

5

% per year?

Question 1 options:

a)

$25

b)

$7

6

c)

$15

d)

$40

e)

$

9

8

Question 2 (1 point)

Saved

What is the rate of interest charged by a lender?

a)

Discounted

b)

Continuous

c)

Effective

d)

Nominal

Question 3 (1 point

What is the amount of money that would have to be deposited today to obtain a specified amount at a later dat

a)

Future value interest factor

b)

Present value interest factor

c)

Present value

d)

Future value

Question 4

A college received a contribution to its endowment fund of $3 million. They can never touch the principal, but they can use the earnings. At an assumed interest rate of 8.5%, how much can the college earn each year?

Question 4 options:

a)

$150,000

b)

$36,000

c)

$255,000

d)

$200,000

e)

$15,000

Question 5

If you deposit $1,200 into an account today that pays 6% interest compounded semiannually, after 25 years how much interest would you have earned?

Question 5 options:

a)

$5,260.69

b)

$4,060.69

c)

$3,950.24

d)

$1,312.53

e)

$20,904.19

Question 6 (1 point)

The cost of a bacon cheeseburger was $.99. If the price of this sandwich increased at a 3% annual rate over the last five years, what would the price be today?

Question 6 options:

a)

$ .84

b)

$1.12

c)

$1.22

d)

$1.15

e)

$1.02

Question 7 (1 point)

Question 7 options:

a)

6

b)

8

c)

5

d)

11

e)

3

Question 8 (1 point)

How many years will it take to triple an amount if you have $6,000 invested at a rate of 15%? (Round up to obtain a whole number of years if necessary.)

Question 8 options:

a)

3

b)

8

c)

9

d)

8

e)

11

Question 9 (1 point)

A credit union advertises a nominal annual rate of 13.7% on a car loan. Interest is compounded monthly. What is the effective interest rate?

Question 9 options:

a)

15.00%

b)

14.59%

c)

10.00%

d)

12.00%

Question 10 (1 point)

What is the present value of an amount given the following information?Number of compounding years = 2FV deposit = $200Nominal Interest rate = 9%Deposit periods in years = 21

Question 10 options:

a)

$25.65

b)

$38.19

c)

$31.49

d)

$45.20

Question 11 (1 point)

The discount rate on this mixed stream of cash flows is 10%. What is the present value given this data?Year 1 Cash flow stream = $7,000Year 2 Cash flow stream = $3,000Year 3 Cash flow stream = $6,000

Question 11 options:

a)

$13,350.86

b)

$15,321.56

c)

$12,432.00

d)

$14,321.78

Question 12 (1 point)

What is the difference between simple and compound interest?

Question 12 options:

a)

Simple interest is only paid at the end of the investment period.

b)

Compound interest is paid up front and not when the investment matures.

c)

Simple interest earns a higher interest rate on reinvested than compound interest.

d)

Compound interest entails receiving interest payments on previously earned interest.

e)

Simple interest is not taxed by the federal government.

Question 13 (1 point)

The bank loaned you $20,000 for a new car. The signed agreement states 60 monthly payments at $444.89. What is the effective rate on the car loan?

Question 13 options:

a)

15.34%

b)

12.68%

c)

13.56%

d)

11.34%

Question 14 (1 point)

What is the future value of $200 deposited today at 8% compounded semiannually for three years?

Question 14 options:

$253

b)

$165

c)

$380

d)

$248

e)

$232

Question 15 (1 point)

The rate on a mixed stream of cash flows is 12%. $1,200 at the beginning of year 1, $2,200 at the beginning of year 2, and $3,300 at the beginning of year 3. What is the future value of all cash flows?

Question 15 options:

$7,700

b)

$8,141

c)

$10,510

d)

$6,504

e)

$17,000

Submit Quiz*2 of 15 questions saved*

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.