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1 pts Question 10 Your business partner is dissatisfied with your company's bank account. He thinks you should earn more than the quoted APR of

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1 pts Question 10 Your business partner is dissatisfied with your company's bank account. He thinks you should earn more than the quoted APR of 5% interest rate. You try to convince him that you are earning more than 5% because the rate is compounded monthly What rate do you tell him you are actually earning? 5.12% 5.35% 5.22% 5.0% Question 11 1 pts You inherited an oil well that will pay you $12,000 per year for 25 years, with the first payment being made today, and the remaining payments at the beginning of each subsequent year. If you think a fair return on the well is 7.5%, how much should you ask for it if you decide to sell it? $135,167.87 $143.795.60 $171.116.77 $178,306.55 $175,430.63 1 pts U Question 12 Suppose you deposit $67.809 in a savings account paying 9% interest compounded monthly. What will be the value of the account in 4 years? $4,243.842.40 $69,866.27 $97,062.16 $95.717.94 Question 13 1 pts Suppose you deposit $35 into a bank account that pays you 8% compounded annually. How much will you have in the account after 10 years? $37.80 $84.39 $75.56 $40.56 $69.97 1 pts Question 14 The local consumer finance company is offering debt consolidation loans. They inform you that they will consolidate your $3500 credit card debt into one loan. They will charge you an interest rate of 1.73% per month. If you make the minimum monthly payment of only $75, how long will it take you to pay off the loan? 8 years 8 months 96 years 1.8 years 2.1 years Question 15 1 pt You hold the winning ticket to the Huntsville lottery. The prize stipulates that, beginning in one year, you will receive $23,500 = year forever. Several people want to buy your ticket from you. If you can safely earn 4% on your money, what is the minimum value for which you should be willing to sell your ticket? $587,500 $376,871 $937,875 $543,199 The value of an infinite stream of cash flows cannot be calculated

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