Question
1) How much is the EAR of investment for 1 year at rate 14.20%? ____% a)15 b)15.25 c)15.5 d)16 2) The present value of an
1) How much is the EAR of investment for 1 year at rate 14.20%? ____%
a)15 b)15.25 c)15.5 d)16
2) "The present value of an annuity of payment every two years is $5,000 and future value is zero. I will receive payments for 12 years. The interest rate is 2%. How much is each payment is each payment?"
a)862.74 b)472.8 c)892.63 d)955
3) "The price of an annuity of payments every two years is $5,855 Future value is 0. Each payment is 2,000 for 16 years. How much is the 1-year interest rate you are earning?"
a)29.96 b)14 c)33.83 d)14.98
4) "You invest now $500 at 12% interest continuously and receive $4,334. How many years is the investment? _____years
a)18
b)16.5
c)19.2
d)20
5) The present value of an annuity of payment every two years is $5,500 and future value is zero. I will receive payments for 14 years. The interest rate is 6%. How much is each payment is each payment?"
a)1,219 b)591.17 c)985.24 d)882.78
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