A.. What's the present value of $2,500 discounted back 5 years if the appropriate interest rate is
Question:
A.. What's the present value of $2,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually? Select the correct answer.
a. $1,593.62 b. $1,599.02 c. $1,615.22 d. $1,604.42 e. $1,609.82
B. American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 23.50%, with interest paid monthly, what is the card's EFF%?
Select the correct answer.
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C. Billy Thornton borrowed $15,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month?
Select the correct answer.
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D, A new investment opportunity for you is an annuity that pays $1,250 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
Select the correct answer.
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