How much principal is paid in the last year of a 40-year loan for $200,000, if payments are made annually at an 8% interest rate?

	a.	$15,529.66
	b.	$14,328.77
	c.	$400.00
	d.	$1,600.00

1 points

QUESTION 2

A firm will set up a fund for retirees. A cash contribution will be made today, in the amount of $2,000,000, and will assume to earn interest at the rate of 8% per annum. The fund will disburse monthly for 12 years, and the desired cash balance at the end of 12 years is $1,000,000. What is the monthly payment that can be made from this fund?

	a.	$17,599
	b.	$24,266
	c.	$12,132
	d.	$17,491

1 points

QUESTION 3

Investment A has the following cash flows: 200,200,300,200 200

Investment B has the following cash flows: 300,300,300,300,300

Both investments have a cost of 350 initially. Indicate which registers, financial or cash flow, can be used to determine the IRR of each investment

	a.	A's IRR can be determined with either financial or cash flow registers; B's IRR with only cash flow registers
	b.	Both investment IRRs can be determined with financial or cash flow registers
	c.	A's IRR can be determined with the cash flow registers; B's IRR with either financial or cash flow registers.
	d.	Both IRRs can be determined with the cash flow registers only.

1 points

QUESTION 4

What is the present value of $1,500 received for 24 months in arrears, followed by $1,200 received for 36 months in arrears, if the annual discount rate appropriate is 9.25%?

	a.	$62,261
	b.	$13,984
	c.	$15,764
	d.	$64,022

1 points

QUESTION 5

What investment accumulates more interest--15% compounded semiannually, or 14% compounded daily?

	a.	The 15% option earns one percentage point more than the 14% option over a year
	b.	The 15% option accumulates more over a year--EAR of 15.5% vs. the 14% option, with an EAR of 15.0%
	c.	They accumulate the same amount over a year
	d.	The 14% option earns an EAR of 15% and is better than the 15% option with an EAR of 15.9%