Beatrice invests $1,340 in an account that pays 5 percent simple interest. How much more could she have earned over a 6-year period if the interest had compounded annually?

$53.73

$22.15

$322.37

$31.80

$38.16

What is the present value of $12,300 to be received 2 years from today if the discount rate is 6 percent?

$9,720.87

$10,545.27

$7,380.00

$11,603.77

$10,946.96

Bob bought some land costing $16,290. Today, that same land is valued at $46,617. How long has Bob owned this land if the price of land has been increasing at 5 percent per year?

22.60 years

23.73 years

13.63 years

21.55 years

14.31 years

The Great Giant Corp. has a management contract with its newly hired president. The contract requires a lump sum payment of $24,100,000 be paid to the president upon the completion of her first 9 years of service. The company wants to set aside an equal amount of funds each year to cover this anticipated cash outflow. The company can earn 8 percent on these funds. How much must the company set aside each year for this purpose?

$1,928,000.00

$1,864,303.68

$2,124,593.36

$1,869,321.47

$1,929,920.99

Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $173.73 million. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for the entire expansion project. Management has decided to save $660,000 a month for this purpose. The firm earns 6 percent compounded monthly on the funds it saves. How long does the company have to wait before expanding its operations? (Do not round intermediate calculations.)

263.23 months

166.08 months

168.40 months

218.92 months

131.62 months

You borrow $6,830 to buy a car. The terms of the loan call for monthly payments for 6 years a rate of interest of 7 percent. What is the amount of each payment?

	$108.53
	$75.82
	$76.60
	$110.25
	$116.44

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,100, $11,100, and $17,300 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 15 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?

$22,501.57

$34,500.00

$25,072.57

$26,815.83

$38,467.50

You are considering an annuity which costs $54200 today. The annuity pays $5800 a year. The rate of return is 6 percent. What is the length of the annuity time period? (Do not round intermediate calculations.)

rev: 07_11_2013_QC_32664, 07_12_2013_QC_32664

7.64 years

14.12 years

10.98 years

19.03 years

11.36 years

You just paid $348,000 for a policy that will pay you and your heirs $12,000 a year forever. What rate of return are you earning on this policy?

3.33 percent

3.70 percent

1.90 percent

3.23 percent

3.45 percent

You are scheduled to receive annual payments of $10,200 for each of the next 20 years. Your discount rate is 11 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

$9,356

$11,322

$9,948

$10,200

$8,935

Your credit card company charges you 1.14 percent per month. What is the annual percentage rate on your account?

10.86 percent

9.95 percent

9.72 percent

12.86 percent

13.68 percent

You are paying an effective annual rate of 14.70 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account?

12.20 percent

14.70 percent

13.79 percent

12.97 percent

16.33 percent