1 You borrow $45,000.You make 15 monthly repayments at an interest rate of 8% p.a. compounded monthly.What is the size of each monthly repayment?

a.$5,257.33

b.$3,000.00

c.$3,816.64

d.$3,162.48

2 Long-term debt can be computed by:

a.adding current liabilities to total assets and subtracting owners' equity.

b.subtracting net working capital from total assets.

c.subtracting net working capital from total liabilities.

d.subtracting owners' equity from total assets.

e.adding net working capital to total fixed assets and then subtracting owners' equity.

3 The interest rate on a personal loan is 3.5% per month.What is the nominal annual rate?

a.142.0% p.a. compounded annually

b.42% p.a. compounded monthly

c.3.5% p.a. compounded monthly

d.51.11% p.a. compounded monthly

4 You deposit $400 each month in a savings plan.The first monthly deposit occurs in month 2 and the final deposit occurs in month 11.What is the accumulated value of your savings in 12 months' time?The interest rate is 18% p.a. compounded monthly.

a.$4,816.48

b.$5,216.48

c.$4,281.09

d.$3,823.74

e.$4,345.30

5 You borrow $400,000.The loan requires 24 quarterly repayments at an interest rate of 8% p.a. compounded quarterly.What amount of principal is repaid in the first three months?

a.$386,851.56

b.$13,148.44

c.$8,000.00

d.$21,148.44