Question
4.) How long will it take $ 50 comma 000 placed in a savings account at 10% interest to grow into $ 75 comma 000?
4.) How long will it take $ 50 comma 000 placed in a savings account at 10% interest to grow into $ 75 comma 000? A.3.25 years B.6.25 years C.5.25 years D.4.25 years
5.) A businessman wants to buy a truck. The dealer offers to sell the truck for either $ 120 comma 000 now, or six yearly payments of $ 25 comma 000. Which of the following is closest to the interest rate being offered by the dealer? A.7.8% B.9.8% C.6.8% D.5.8%
6.) A perpetuity has a PV of $ 22 comma 000. If the interest rate is 11%, how much will the perpetuity pay every year? A.$ 1,210 B.$ 1,936 C.$ 2,420 D. $1,452
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