1. Find the present value of $600 due in the future under the following conditions:

   10% nominal rate, semiannual compounding, discounted back 4 years

   		$ 279.20
   		$ 895.42
   		$ 406.10
   		$ 888.47
   		$ 600

2 points

Question 4

1. What is the present value of a perpetuity of $120 per year if the appropriate discount rate is 8%?

   		$1,428.57
   		$714.29
   		$120.00
   		$857.14
   		$1,500.00

2 points

Question 5

1. How much principal would you have repaid after 2 years for a $35,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 8%.

   		$5,965.98
   		$4,094.94
   		$12,409.23
   		$25,000.00
   		$35,000.00

2 points

Question 6

1. Universal Bank pays 6% interest, compounded annually, on time deposits. Regional Bank pays 6.2% interest, compounded quarterly. What is Regional Bank's effective annual interest rate?

   		6.50%
   		7.00%
   		6.14%
   		6%
   		6.35%

2 points

Question 7

1. While Mary Corens was a student at the University of Tennessee, she borrowed $16,000 in student loans at an annual interest rate of 4.7%. If Mary repays $1,000 per year, then how long (to the nearest year) will it take her to repay the loan?

   		30
   		16
   		15
   		8
   		50

2 points

Question 8

1. How much interest would you have paid after 1 year for a $35,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 8%.

   		$2,800.00
   		$8,765.98
   		$6,594.94
   		$2,500.00
   		$7,000.00

2 points

Question 9

1. How much would be the payment for a $35,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 8%.

   		$6,594.94
   		$5,000.00
   		$8,765.98
   		$7,000.00
   		$2,800.00

2 points

Question 10

1. Sales for Hanebury Corporations just-ended year were $15 million. Sales were $8 million 5 years earlier. At what rate did sales grow?

   		50.00%
   		13.40%
   		10.67%
   		53.33%
   		14.87%