Finance homework
Practice Question 30 |
Under which of the following discounting methods will the present value of an investment be the highest, assuming the same annual interest rate?
Quarterly. |
Monthly. |
Continuous. |
Yearly. | ||
Practice Question 34 | ||
Which of the following is a similar concept to the compound growth rate of money?
The yield on a bond. |
The discount rate on a capital budgeting project. |
All of these. |
The internal rate of return on an investment. | |||
Practice Question 29 | |||
The future value of an annuity is typically used when analyzing
loan amortization schedules. |
retirement plans. |
the price of common stock. |
alternative capital budgeting proposals. | |
What is the value of this 20 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 4%. The discount rate used to evaluate similar leases is 9%. (Round to the nearest dollar.)
$ 24,361 |
$ 68,000 |
$ 39,856 |
$ 40,000 | ||
Multiple Choice Question 87 | ||
Time to attain goal:Elegant Designers have generated sales of $625,000 for the current year. If they can grow their sales at a rate of 12 percent every year, how long will they take to triple their sales? (Round off to the nearest year.)
8 years |
9 years |
7 years |
10 years | ||
Practice Question 6 | ||
You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your annual interest rate is 10% and you intend to pay for the car over five years. What will be your monthly payment?
$552.42 |
$637.41 |
$566.67 |
$433.33 |
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Solution: Finance homework