Chapter 5 Quiz - Question 1 C The present value of \$100 to be received 10 years from today assuming an opportunity cost of 9 percent is a \$236 b \$699 c

# Chapter 5 Quiz - Question 1 C The present value of \$100 to...

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Question 1CThe present value of \$100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is a.\$236.b.\$699.c.\$ 42.d.\$ 75. Question 2BWhat is the rate of return on an investment of \$16,278 if the company expects to receive \$3,000 per year for the next 10 years? Question 3BThe rate of interest agreed upon contractually charged by a lender or promised by a borrower is the ________ interest rate. Question 4CHayley makes annual end-of-year payments of \$6,260.96 on a five-year loan with an 8 percent interest rate. The original principal amount was Question 5CAdam borrows \$4,500 at 12 percent annually compounded interest to be repaid in four equal annual installments. The actual end-of-year payment is a.\$ 942.b.\$1,125.c.\$1,482.d.\$2,641.