HW 1 Text of Blackboard Quiz (After Problem 11) Comparing a red Ford and a blue Chevy which of following are intangible factors: P9P? My girlfriend likes Fords T/F The Ford dealer goes to my church T/F The Chevy gets 2.3 more miles per gallon. T/F (Problem 1-9) A credit card company charges interest of 18% per year on the unpaid balance in your account. If this interest is compounded monthly, what is the effective annual interest rate? i. a. 18%, b. 20%, c. 18.56%, d. 19.56% (Problem 13) What is the nal payment for these options (neglect rounding error and pennies) 5. 6. 8. Repay an equal amount, $5000, of the principal each year, plus interest on the unpaid balance, a. 5000, b. 5600, c. 5900, d. all of the above Pay interest only each year until the end of the eighth year, when you will repay the $40,000 principal plus the interest for the eighth year, a. 44,800, b. 54,000, c. 48,000, d. 52,000 Pay nothing until the sixth year, when you will repay the $40000 principal plus the interest that has accrued over the eight year period a. 44,800, b. 99,038, c. 48,000, d. 52,000 Pay an equal amount each year, a. 5000, b.5600, c. 5900, d. 8052