Question

-What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding.  

A.

$301,115

B.

$306,492

C.

$310,868

D.

$342,908

E.	$347,267

-Karen is borrowing $17,800 to buy a car. The terms of the loan call for monthly payments for 5 years at 8.6 percent interest. What is the amount of each payment?  

A.

$287.71

B.

$291.40

C.

$301.12

D.

$342.76

E.

$366.05

-Jonathan Corp. is evaluating a project with an initial cash requirement of $187,400. The project will yield cash flows of $2,832 monthly for 84 months. What is the rate of return on this project?

A.	6.97 percent

B.	7.04 percent

C.	7.28 percent

D.	7.41 percent

E.	7.56 percent

-A perpetuity  pays an annual dividend of $3.20. What is one share of this perpetuity worth today if the rate of return is 11.75 percent?

A.

$23.48

B.

$25.00

C.

$27.23

D.

$33.80

E.

$35.55

-What is the effective annual rate if stated rate is  8.25 percent per year compounded quarterly?

A.	8.32 percent

B.	8.38 percent

C.	8.42 percent

D.	8.51 percent

E.	8.61 percent

Answer 1

ДА В 1 1 $310,867.82 | 2 2 $366.05 з з|| 7.04% 4 4 | 2723 | 8.51% 5 5