Finance ch. 5

# Finance ch. 5 - pay the same monthly payment. Jamie's loan...

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19. You own an oil well that will pay you \$25,000 per year for 8 years, with the first payment being made today . If you think a fair return on the well is 7%, how much should you ask if you decide to sell it? A) \$116,110 B) \$288,349 C) \$315,976 D) \$159,732 E) \$217,513 Points Earned: 2.5/5.0 Correct Answer(s): D 20. Recently, Jamie and Jake each bought new cars. Both received a loan from a local bank with a nominal interest rate of 12% where payments are made at the end of each month, and they both
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Unformatted text preview: pay the same monthly payment. Jamie's loan is for \$15,000; however, his loan matures at the end of 4 years (48 months), while Jake's loan matures in 5 years (60 months). After 48 months Jamie's loan will be paid off, but what will be the remaining balance on Jake's loan? A) \$ 1,998.63 B) \$ 4,445.84 C) \$ 2,757.58 D) \$11,198.55 E) \$ 3,138.52 Points Earned: 5.0/5.0 Correct Answer(s): B...
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## This note was uploaded on 11/04/2009 for the course BUS FIN 2100 taught by Professor Shmidl during the Spring '09 term at Laramie County Community College.

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