1.A credit card has a stated rate of 17.3%. what is the APR if interest is compounded daily?

-17.3%

-18.5%

-18.7%

-18.9%

2.XYZ corp owes $200,000 to one of its suppliers. Since it does not have that amount available to make a full payment a the moment, an agreement has made reached to make equal weekly payments for one year to pay off this accounts payable debt. At an APR of 3%, what would be the weekly payments (to the nearest dollar) necessary to pay off this debt?

-$3,790

-$3,846

-$3,874

-$3,905

3.Frank pays 1.5% per month interest on his credit card balance. Multiplying this monthly by 12 would yield what is referred to as:

-effective annual rate

-compound rate

-annual percentage rate

-simple rate

4.What is the effective annual rate on a savings account that has an APR of 3% compounded quarterly?

-3.034%

-3.138%

-3.333%

-3.431%

5.Florence just turned 67 today and is looking forward to retirement. She has saved diligently throughout the years and has accumulated $500,000 in retirement savings. She plans in conservative investments earning an APR of 3%. She plans to set up automatic equal monthly withdrawals from her investment account for spending money. What is the maximum (to the nearest dollar) that she can withdraw every month to ensure that her savings last at least 30 years?

-$2,329

-$2,125

-$2,108

-$2,250

6.Julie is due to start receiving payments from a legal settlement. She is scheduled to receive the first payment of $1000 today followed by 83 payments over a seven year period. Which finance terms best describe this payment structure?

-annuity due

-ordinary annuity

-consol

-perpetuity

7.Consider the following two annuities. Annuity A is an annuity with monthly payments of $100 over a twenty year period. Annuity B is an annuity due with monthly payments of $100 over a twenty year period. Both annuities have a rate of 5%. Based on this information, which of the following statements is valid?

-the present value of annuity A and B are equal

-the future value of annuity A is greater than the future value of annuity B

-annuity A has a lower future value but higher present value than annuity B

-annuity A has both lower future value and lower present value than annuity B

8.A loan that compounds interest monthly has an EAR of 16.3%. What is the APR?

-16.3%

-15.2%

-14.8%

-12.7%

9.XYZ is considering a project that is expected to generate the following cash flow: $5 million in year 1, $4.5 million in year 2, and $3 million in year 3. The corporate finance department at XYZ corp has calculated a discount rate of 9% for projects at the firm. What is the present value employing the discount rate stipulated by the corporate finance department? (round to the nearest dollar)

10.If you deposit $400, $700, and $200 in a savings account at the end of years 2016, 2017, and 2018 respectively, how much money will there be in the account at the end of 2018 if it pays 2.1% per year? (round to the nearest cent)