{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Finance_2

# Finance_2 - increase the future value of your deposit...

This preview shows pages 1–3. Sign up to view the full content.

1. (TCO 3) You have been approved for a \$70,000 loan toward the purchase of a new home at 12% interest. The mortgage  Assume you pay yearly. (Points : 3) \$2613 \$8690 \$5740 None of the above  *www.bankrate.com

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
2. (TCO 3) First Choice Bank pays 9% APR compounded quarterly on its business loans. National  Emerald Bank pays 16% APR compounded daily. The EAR for First Choice and National Emerald Bank  are: (Points : 3) 9.31% and 17.35%, respectively 9% and 17.50%, respectively 9.31% and 17.50%, respectively 9% and 17.35%, respectively 3. (TCO 3) ABC Electronics is considering an investment that will have cash flows of \$16,000, \$5,000 and  \$4,000 for years 1 through 3. What is the approximate value of this investment today if the appropriate  discount rate is 9% per year? (Points : 3) \$23,250 \$27,250 \$21,970 None of the above  4.  (TCO 3) You deposited \$8,000 in your bank account today. An increase in which of the following will
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: increase the future value of your deposit assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all answers that apply: (Points : 4) interest rate initial amount of your deposit frequency of the interest payments None of the above will increase the value of the investment 5. (TCO 3) If you borrow \$50,000 today at 10% interest for eight years. How much of your second payment will be applied towards the principal of the loan? (Points : 3) \$5,000 \$4,372 \$4,809 cannot be determined with the information given 6. (TCO 3) Match the following terms with the examples as appropriate: (Points : 4) Answer : Pure discount loan : Amortized Loan : Interest-only Loan...
View Full Document

{[ snackBarMessage ]}

### Page1 / 3

Finance_2 - increase the future value of your deposit...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online