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.
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- Spring '14
- HeinoH
- Time Value Of Money, Interest
