question 1// 1)Hunter is looking to purchase a motorcycle. Due to COVID-19, the prices are high, but
Question:
question 1//
1)Hunter is looking to purchase a motorcycle. Due to COVID-19, the prices are high, but the financing rates still seem reasonable. Hunter is comparing them to see which bank he will use for the loan. Which bank would you recommend Hunter apply to in seeking the lowest effective rate? (Round to two decimal places)
Bank of Montreal's nominal interest rate is 6.9%, compounded quarterly.
CIBC's nominal interest rate is 6.7%, compounded monthly.
Bank of Nova Scotia's nominal interest rate is 6.65%, compounded semi-monthly
a)Bank of Montreal
b)CIBC
c)Bank of Nova Scotia
d)Either the Bank of Montreal or Nova Scotia's loan as the effective interest rates are equivalent
e)All rates are equivalent when calculating the effective interest rate; Hunter can apply for a loan from any of the three banks.
Question 2//
1)In managing your liquidity, you must consider the following:
______________________ deals with the decisions about how much credit you need to support your spending and which sources of credit to use.
____________________deals with deciding how much money to retain in a liquid form and how to allocate the funds among short-term investment instruments.
a)Credit management; Debit management;
b)Money management; Investment allocation;
c)Credit management; Money management;
d)Savings management; Credit management;
e)Debt management; Emergency funding;
QS3// 1)As a new, full-time employee, Jenny has just become eligible to participate in Google's retirement plan. Google matches her contributions dollar for dollar! The plan averages an annual return of 7% compounded monthly. Jenny is 25 years old and plans to work until age 60. If she contributes 8% of her gross salary on the 1st of each month and her employer matches her contributions at the end of each month, how much will she have in her company retirement plan when she retires? Jenny's gross annual salary is $75,000 and is paid on the 1st of each month.
a)$1,898,765
b)$1,726,744
c)$1,839,612
d)$1,804,893
e)$1,806,307