True false the correct answer is false the price of

True
False
The correct answer is false. The price of ZooCom (ZOO) stock was down $0.56. The negative sign in
front of the 0.56 represents a decrease in price.
Score: 1 of 1
Kaitlyn hopes to attend a college where tuition is $24,000 per year. She believes that tuition will increase at
4% for the 3 years until she plans to enter college. Find the quarterly payments needed to accumulate funds

to pay the first year’s tuition if funds earn 8% compounded quarterly.
Incorrect. Find the future value of the tuition. ;Use a rate of 4% per year and 3
compounding periods in the table on page 402. ;The factor from the table is
1.12486. ;Future Value = $24,000 x 1.12486 = $26,996.64 ;Find the interest rate
per compounding period and the total number of compounding periods. ;8% / 4
= 2% ;3 years x 4 periods = 12 ;The factor from the table for 2% and 12 is
0.07456. ;Payment = Future Value x Factor from Table ;Payment = $26,996.64
x 0.07456 ;Payment = $2,012.87
$1,597.20
$34.05
Score: 0 of 2
2.
Score: 0 of 1
3. The owner of a
guitar company
plans to buy new
materials for the
manufacturing of
guitars in 3 years at
a cost of $25,000.
She believes that
she can earn 6%
compounded
semiannually. Find
the amount of each
of the semiannual
payments needed.

$1,810
$3,865
Correct!
The
sinking
fund was
first used
in Great
Britain in
the 18th
century to
reduce
national
debt.
Score: 2 of 2
1. To find the present value of an ordinary annuity, you multiply the payment by the factor from the annuity
table.
True
False
The correct answer
is true. To find the
present value of an
annuity with
periodic payments
at the end of each
period, you use the
compound interest
formula. You
multiply the
payment by the
factor from the
annuity table.
Present Value =
Payment x Factor
from Table
Score: 1 of 1
2. Josianne has two different offers: (1) $12,000 cash and (2) $8,000 down and $900 semiannually for 5
years. Assuming 10% compounded semiannually, determine the better offer and find the difference
between them.
Score: 0 of 2
3. Find the lump sum that
must be set aside
today to make
quarterly payments of
$4,000 for 12 years,
assuming 6%
compounded quarterly.
Then, find the interest

earned.
The present
value is
$136,170.20.
The interest
earned on
this amount
over 12 years
would be
$55,829.80.
Correct! An
ordinary
annuity is a
series of
equal
payments
made at the
end of each
period over a
fixed amount
of time.
The present
value is
$55,829.80.
The interest
earned on
this amount
over 12 years
would be
$136,170.20.
The present
value is
$33,535.36.
The interest
earned on
this amount
over 12 years
would be
$55,829.80.
The present
value is
$136,170.20.
The interest
earned on
this amount