100% de satisfacción garantizada Inmediatamente disponible después del pago Tanto en línea como en PDF No estas atado a nada
logo-home
Buscado previamente por ti
Buscado previamente por ti
logo
FIN 301 Exam 2 HW Question with Correct Answers $15.49   Añadir al carrito
Navegar rápidamente a
Vista previa
  2.  
  3. FIN 301
  4.  
  5. FIN 301

Examen

FIN 301 Exam 2 HW Question with Correct Answers
 7 vistas  0 veces vendidas
  • Grado
  • FIN 301
  • Institución
  • FIN 301

Which of the following statements is CORRECT, assuming positive interest rates and holding other things constant? A 30-year, $150,000 amortized mortgage will have larger monthly payments than an otherwise similar 20-year mortgage. A bank loan's nominal interest rate will always be equal to or...

[Mostrar más]

Vista previa 2 fuera de 11  páginas

Información del documento

  • 24 de agosto de 2024
  • 11
  • 2024/2025
  • Examen
  • Preguntas y respuestas

Temas

  • fin 301 exam 2 hw question with correct answers
  • which of the following statements is correct assu

Escuela, estudio y materia

  • FIN 301
  • FIN 301

Vendedor

avatar-seller
lectknancy

Comentarios recibidos

Vista previa del contenido

FIN 301 Exam 2 HW Question with
Correct Answers
Which of the following statements is CORRECT, assuming positive interest rates and
holding other things constant?

A 30-year, $150,000 amortized mortgage will have larger monthly payments than an
otherwise similar 20-year mortgage.

A bank loan's nominal interest rate will always be equal to or greater than its effective
annual rate.

If an investment pays 10% interest, compounded quarterly, its effective annual rate will
be greater than 10%.

Banks A and B offer the same nominal annual rate of interest, but A pays interest
quarterly and B pays semiannually. Deposits in Bank B will provide the higher future
value if you leave your funds on deposit.

The present value of a 5-year, $250 annuity due will be lower than the PV of a similar
ordinary annuity. - Answer-If an investment pays 10% interest, compounded quarterly,
its effective annual rate will be greater than 10%.

You plan to save $320 per month starting today for the next 41 years "just to start the
month off right." You feel that you can earn an interest rate of 10.2 percent compounded
monthly. How much will there be in the account 41 years from today?

1,981,539.41

2,183,227.75

2,405,187.88

2,183,656.43

2384,916.09 - Answer-NPER= 41*12 = 492
Rate= 10.2% / 12
PMT = -320

FV = $2,384,916.09
Annuity Due = $2,384,916.09 * (1 + Rate / Compounded)
= $2,384,916.09 * (1 + 10.2% / 12) = $2,405,187.88

, Your credit card company charges you 1.39 percent per month. What is the EAR on
your credit card?

18.02%

18.92%

15.85%

16.68%

17.35% - Answer-18.02%

EAR
=(1+(Nominal Rate)/ M) ^ M -1
18.02%
=(1+0.0139)^12 -1

One year ago, the Jenkins Family Fun Center deposited $3,900 into an investment
account for the purpose of buying new equipment four years from today. Today, they
are adding another $5,700 to this account. They plan on making a final deposit of
$7,900 to the account next year. How much will be available when they are ready to buy
the equipment, assuming they earn a rate of return of 8 percent?

22,272.95

20,822.44

22,624.39

23,436.89
21,987.96 - Answer-FV = $3,900 (1 + 0.08)5 + $5,700 (1 + 0.08)4 + $7,900 (1 + 0.08)3
= $23,436.89

One year ago, the Jenkins Family Fun Center deposited $3,900 into an investment
account for the purpose of buying new equipment four years from today. Today, they
are adding another $5,700 to this account. They plan on making a final deposit of
$7,900 to the account next year. How much will be available when they are ready to buy
the equipment, assuming they earn a rate of return of 8 percent?

22,272.95

20,822.44

22,624.39

Los beneficios de comprar resúmenes en Stuvia estan en línea:

Garantiza la calidad de los comentarios

Garantiza la calidad de los comentarios

Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!

Compra fácil y rápido

Compra fácil y rápido

Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.

Enfócate en lo más importante

Enfócate en lo más importante

Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!

Preguntas frecuentes

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

100% de satisfacción garantizada: ¿Cómo funciona?

Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for $15.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

45,681 summaries were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Empieza a vender
$15.49
  • (0)
  Añadir