Question
15- Jamie deposits $1,000 into an account that pays 4% interest compounded annually. Chris deposits $1,000 into an account that pays 4% simple interest. Both
15-Jamie deposits $1,000 into an account that pays 4% interest compounded annually. Chris deposits $1,000 into an account that pays 4% simple interest. Both deposits were made today. At the end of five years, Chris will have more money in his account than Jamie has in hers.
Select one:
a. False
b. True
16-Lottie's Boutique needs to maintain 20% of its sales in net working capital. Lottie's is considering a 3-year project which will increase sales from their current level of $110,000 to $130,000 the first year and $145,000 a year for the following two years. What amount should be included in the project analysis for the last year of the project in regards to the net working capital?
Select one:
a.-$35,000
b.$0
c.$7,000
d.-$7,000
e.$35,000
17-The yield to maturity will be greater than the coupon rate when a bond is selling at a premium.
Select one:
a. False
b. True
-Just the correct answers (Letters), without any explanation at all, please!
- Just answer please if you are 100% sure about the answers; many thanks!
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