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

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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
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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 
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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...
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This note was uploaded on 07/12/2011 for the course BUSN 379 taught by Professor Jones during the Spring '11 term at Marymount College.

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

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