Chap 6 Discounted CF Valuation P6-15 Calculating APR (L04) 1 Barcain Credit Corp. wants to earn an effective annual return on its consumer loans of 12 percent per year. The bank uses daily compounding on its loans. 1 points Required: What interest rate is the bank required by law to report to potential borrowers? eBook Multiple Choice References 12.00% O 10.20% 11.33% 12.47% 12.75% Chap 6 Discounted CF Valuation P6-38 Growing Annuity (LO1) 2 1 points Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $49,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 5 percent of your annual salary in an account that will earn 10 percent per year. Your salary will increase at 5 percent per year throughout your career. eBook Required: How much money will you have on the date of your retirement 39 years from today? References Multiple Choice $1,687,561.00 $2,016,094.00 $43,066.00 $1,736,501.00 $1,771,939.00 Chap 6 Discounted CF Valuation Saved MC Qu. 53 You are considering an annuity which costs... 7 You are considering an annuity which costs $104,643 today. The annuity pays $7,200 a year at an annual interest rate of 5.5 percent. What is the length of the annuity time period? 1 points Multiple Choice eBook 30.00 years References 31.00 years O 39.84 years 20.06 years O 28.90 years Chap 6 Discounted CF Valuation Saved MC Qu. 27Phil can afford $pmt a month for $yrs years... 8 Phil can afford $160 a month for 6 years for a car loan. If the interest rate is 5.9 percent, how much can he afford to borrow to purchase a car? 1 points Multiple Choice eBook O $8,092.62 References O $9,875.51 O $11,520.00 O $9,681.88 O $10,137.60