Question 2 0 out of 2 points when compounding more

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Question 2 0 out of 2 points When compounding more than once a year, the true opportunity costs measure of the interest rate is indicated by the: Answer Selected Answer: Correct Answer: effective annual rate Question 3
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0 out of 2 points For a given interest rate, as the length of time until receipt of the funds increases, the present value interest factor Answer Selected Answer: Given] Correct Answer: decreases. Question 4 0 out of 2 points Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years? Answer Selected Answer: Given] Correct Answer: $1,220.20 Question 5 0 out of 2 points A loan that is repaid in equal payments over a specified time
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period is referred to as a (n): Answer Selected Answer: Given] Correct Answer: amortized loan Question 6 0 out of 2 points Interest earned only on an investment’s principal or original amount is referred to as: Answer Selected Answer: Given] Correct Answer: simple interest Question 7 0 out of 2 points In future value or present value problems, unless stated otherwise, cash flows are assumed to be Answer Selected Answer: Correct Answer: at the end of a time period.
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Question 8 0 out of 2 points A famous athlete is awarded a $9 million contract that stipulates equal payments to be made monthly over a period of five years. To determine what such a contract is worth today, you would need to use: Answer Selected Answer: Correct Answer: present value factors of an annuity Question 9 0 out of 2 points Cecilia bought 100 shares of Minnesota Mining and Manufacturing in June, 1987 for $38 a share for a total investment of $3,800. She sold the shares in June, 1996 for $8,960. What is Cecilia’s annual rate of return on her investment? Answer Selected
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Answer: Given] Correct Answer: 10% Question 10 0 out of 2 points What would be the future value of a loan of $1,000 for two years if the bank offered a 10% interest rate compounded semiannually? Answer Selected Answer: Given] Correct Answer: $1,216 Question 1 0 out of 2 points For positive interest rates, the future value interest factor is Answer Selected Answer: Correct Answer: always greater than 1.0.
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