You can deposit 850 today into a savings account how

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43. You can deposit $850 today into a savings account. How long must you wait for the investment to grow to $5,000 if you can earn 6 percent on this money? A. 30.41 years B. 23.81 years C. 59.95 years D. 22.63 years E. 31.45 years BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 4 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #53 SECTION: 4.3 TOPIC: TIME PERIOD TYPE: PROBLEMS
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44. A lender would prefer a borrower have which one of the following sets of ratios? BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 003 #23 SECTION: 3.2 TOPIC: LONG-TERM SOLVENCY TYPE: CONCEPTS 45. Kimberly is considering an investment of $2,000 each year for 15 years. The investment will pay 8 percent interest. How much will this investment be worth at the end of the 15 years? BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 005 #66 SECTION: 5.2 TOPIC: ANNUITY FUTURE VALUE TYPE: PROBLEMS 46. Given an interest rate of zero percent, the future value of a lump sum invested today will always: BLOOMS TAXONOMY QUESTION TYPE: COMPREHENSION LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #15 SECTION: 4.1 TOPIC: FUTURE VALUE TYPE: CONCEPTS
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47. The Turner Co. has one bond issue outstanding. An indenture provision prohibits the firm from redeeming the bonds during the first two years. This provision is referred to as a _____ provision. A. deferred call B. liquidity C. debenture D. sinking fund E. market BLOOMS TAXONOMY QUESTION TYPE: KNOWLEDGE LEARNING OBJECTIVE NUMBER: 1 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 006 #15 SECTION: 6.2 TOPIC: DEFERRED CALL PROVISION TYPE: DEFINITIONS 48. Callaway, Inc. needs $2.3 million 6 years from now to purchase a machine. Currently, the firm has some extra cash and would like to establish a savings account for this purpose. The account pays 4 percent interest, compounded annually. How much money must the company deposit today to fully fund the machine purchase? BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 004 #46 SECTION: 4.2 TOPIC: PRESENT VALUE TYPE: PROBLEMS
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