answerss - 13 If you are an investor which of the following...

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13) If you are an investor, which of the following would you prefer? A. Earnings on funds invested would compound daily. B. Earnings on funds invested would compound annually. C. Earnings on funds invested would compound monthly. D. Earnings on funds invested would compound quarterly. 14) Northwest Bank pays a quoted annual (nominal) interest rate of 4.75%. However, it pays interest (compouned) daily using a 365-day year. What is the effective annual rate of return (APY)? A. 5.02% B. 4.86 % C. 3.61% D. 4.75% 15) Edward Johnson decided to open up a Roth IRA. He will invest $1,800 per year for the next 35 years. Deposits to the Roth IRA will be made via a $150 payroll deduction at the end of each month. Assume that Edward will earn 8.75% over the life of the IRA. How much will he have at the end of 35 years? A. $250,321 B. $414,405 C. $363,000 D. $125,250 16) The primary purpose of a cash budget is to: A. determine accounts payable. B.
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This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.

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answerss - 13 If you are an investor which of the following...

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