Question
23. If the appropriate discount rate for the following cash flows is 11.7 percent per year, what is the present value of the cash flows?
23.
If the appropriate discount rate for the following cash flows is 11.7 percent per year, what is the present value of the cash flows?
Year | Cash Flow |
1 | $21,600 |
2 | $25,900 |
3 | $38,700 |
4 | $16,200 |
Group of answer choices
$71,407.19
$74,221.80
$78,270.77
$80,407.16
$81,121.03
24.
You want to buy a new sports coupe for $84,600, and the finance office at the dealership has quoted you a 7.1 percent APR loan for 48 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?
Group of answer choices
$2,017.84; 7.24 percent
$2,017.84; 7.29 percent
$2,017.84; 7.34 percent
$2,029.78; 7.29 percent
$2,029.78; 7.34 percent
25.
First Bank offers personal loans at 7.6 percent compounded monthly. Second Bank offers similar loans at 7.75 percent compounded semi-annually. Which one of the following statements is correct concerning these loans?
Group of answer choices
The First Bank loan has an effective rate of 7.67 percent.
The Second Bank loan has an effective rate of 8.03 percent.
The annual percentage rate for the Second Bank loans is 7.90 percent.
Borrowers should prefer the loans offered by Second Bank.
The First Bank offers the best deal on loans.
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