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As CFO you are evaluating the following investments. You have estimated that the Effective Annual Rate is the same for all investments and is greater

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As CFO you are evaluating the following investments. You have estimated that the Effective Annual Rate is the same for all investments and is greater than zero. Which of the following investments is the most attractive, that is has the highest future value? Investment Delta pays $550 at the end of every year for the next 10 years. Investment Gamma pays $275 at the end of every 6-month period for the next 10 years. Investment Alpha pays $550 at the beginning of every year for the next 10 years. Investment Beta pays $275 at the beginning of every 6-month period of the next 10 years. You are comparing the following bank accounts. Which has the HIGHEST Effective Annual Rate? An account that pays 8.75% APR with monthly compounding. An account that pays 8.75% APR with daily compounding. An account that pays 9.25% APR with quarterly compounding. An account that pays 9.25% APR with weekly compounding. As a small business owner, you take out a loan for $290,000 at a 4.3% interest rate to finance a new project. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2? $11.445.73 $8,679.84 $10,377.41 $9.818.14

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