BoomZoom, Inc. has seen its Earnings Per Share (EPS) increase from $0.25 to $1.50 in seven years. What has been the annual compound growth rate of BoomZoom's EPS?

Select one:

29.39%,

28.87%,

29.17%

27.97%

28.97%

28.77%

29.29%

Question text

Valley Bank is currently offering a savings account that pays 1.88% interest compounded monthly. What is the annual effective interest rate on this savings account?Select one:

1.84% 1.80%1.92%

1.82%

1.90%

1.76%

1.88%

1.78%

Determine how much $1,000 deposited in a savings account paying 8% (compounded annually) will be worth after 5 years.

Select one:

$1,587

$1,851

1,714

$987

$1,360

$1,469

$957

$1,260

If John deposits $1,000 in an account today and then deposits $500 more in the account one year from now, how much will be in the account 3 years from now if the account earns 4% interest compounded quarterly?

Select one:

$1,674

$1,668

$1,665

$1,659

$1,671

$1,599

$1,500

$1,566

Which of the following statements is(are) true?

Select all that apply

Select one or more:

When interest rates increase, the present value of an annuity will increase.

A typical perpetuity will have payments for 20 or 30 years.

Joseph has been offered an investment that promises to pay $2,000 at the end of each year for the next three years and $3,000 at the end of each year for years 4 through 6. If Joseph requires a 6 percent rate of return on investments of this sort, what is the maximum amount he should pay for this investment?

Select one:

$13,365.06

$11,982.14

$14,394.52

$12,078.96

$12,125.32

$15,000.00

$13,332.23

$14,751.97

Earlier today Jim won a lawsuit and was awarded an annuity with annual payments of $50,000 over the next ten years, the first payment will be received today. This is an example of an annuity due.

With an annuity due with annual payments, the first payment will occur at the end of the first year.

Increasing compounding frequency (i.e., increasing the number of compounding period per year) will decrease present values.

If the required rate of return increases, the present value of an annuity will decrease.

When interest rates increase, the future value of an annuity will decrease.

The following cash flows have a present value of $8,955.67 (including the missing cash flow). Determine the missing cash flow if the discount rate used is 10%.

Select one:

$6,000

$5,300

$5,200

$5,900

$5,400

$5,800

$5,100

$5,600

$5,700

$5,500

$5,000

Jessica Jamison needs to borrow $25,000 to purchase a new car. She can get a 5 year loan from her bank with an interest rate of 4% (compounded monthly) that will require monthly payments. How much interest (in dollars) will Jessica pay over the life of the loan?

Select one:

$5,000.00

$3,996.62

$3.375.75

$3.475.75

$2,624.78

$1,015.10

$5,075.50

$1,000.00

Three years from now, Sam Samson wants to have $30,000 available in order to buy a car. Sam plans to put back part of his salary at the beginning of each year (i.e., the first deposit is today) in an account paying 8 percent annually. Since Sam's salary is increasing, he is planning on doubling his first year deposit in the second year as well as doubling his second year deposit in the third year. How much must Sam deposit at the beginning of the first year (i.e., today) in order to achieve his goal?

Select one:

$3,791

$3,907

$3,967

$4,028

$4,090

$4,154

$3,735

$3,681

Determine how much $2,000 deposited in a savings account paying 4% (compounded annually) will be worth after 5 years.

Select one:

$2,587

$2,433

$2,333

$2,714

$2,187

$2,651

$2,260

$2,360