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A pottery factory purchases a continuous belt conveyor kiln for $56,000. A 7% APR loan with monthly payments is taken out to purchase the kiln.

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A pottery factory purchases a continuous belt conveyor kiln for $56,000. A 7% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $650.20, over what term is this loan being paid? O A. 11 years B. 10 years OC. 9 years D. 8 years Term in years: 1 2 3 4 5 Rate: 1.8% 2.25% 2.30% 2.66% 3.13% The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. What is the present value (PV) of cash flows from an investment that yields $8,000 at the end of each year for the next fou years? O A. $30,185 B. $42,259 OC. $36,222 OD. $24,148 Consider the following investment alternatives: Investment A B C D Rate 6.515% 6.3356% 6.4093% 6.399% Compounding Annual Daily Quarterly Monthly Which alternative offers you the lowest effective rate of return? O A. Investment A B. Investment B C. Investment C D. Investment D

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