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FNCE HOMEWORKS (1-4) 2024 QUESTIONS WITH 100% CORRECT ANSWERS!!
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FNCE HOMEWORKS (1-4) 2024 QUESTIONS WITH 100% CORRECT ANSWERS!!
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FNCE HOMEWORKS (1-4) 2024 QUESTIONS
WITH 100% CORRECT
ANSWERS!!
FNCE
Evatee 8/10/24 FNCE
,FNCE HOMEWORKS (1-4) 2024 QUESTIONS
WITH 100% CORRECT ANSWERS!!
What is the PV of 5 year ordinary annuity of 200 dollars with an interest rate of
8%?
a. 1173.32
b. 565.32
c. 985.62
d. 798.54 Answer - d. 798.54
Jenny needs to borrow $16,000 for 3 years. The loan will be repaid in one lump
sum at the end of the loan term. Which one of the following interest rates is
best for Jenny?
A. 8 percent simple interest
B. 8 percent interest, compounded annually
C. 8.5 percent simple interest
D. 8.5 percent interest, compounded annually
E. 9 percent interest, compounded annually Answer - A. 8 percent simple
interest
You just won the state lottery. The state gives you the choice of $10 million
today or a 20-year annuity of $1 million, with the first payment coming one
year from today. What rate of return is built into the annuity?
, a. 5.6%
b. 7.8%
c. 8.3%
d. 8.8%
e. 9.1% Answer - b. 7.8%
If you were to invest $100,000 in a savings account paying interest at 3.0%
annually (compounded annually), how many years would you need to wait for
the balance to grow to $150,000 (round to nearest year)?
a. 14 years
b. 16 years
c. 23 years
d. 27 years
e. 41 years Answer - a. 14 years
Interest rate is 6%/year; If I borrow 300 dollars today. How much will I owe in 2
years (simple interest rate)
a. 158
b. 250
c. 324
d. 336
e. 356 Answer - d. 336
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