If a perpetuity has a present value of $$8,000$ and the annual payment is $$400,$ what is the discount rate?

Question $6$Answer

a$.$

$2\mathrm{.}5\%$

b$.$

$5\%$

c$.$

$8\%$

d$.$

$10\%$

e$.$

$20\%$

b$.$

Monitor the managers

c$.$

Company stock options

d$.$

Require managers to disclose any outside business interests

e$.$

Both B and C

b$.$

$32\mathrm{.}6\%$

c$.$

$85\mathrm{.}7\%$

d$.$

$14\mathrm{.}3\%$

e$.$

$23\mathrm{.}4\%$You have a $$30,000$ five year auto loan with an $8\%$ annual interest rate and annual payments. What proportion of your $4$th payment will be interest?

Question $3$Answer

a$.$

$93\mathrm{.}3\%$

b$.$

$32\mathrm{.}6\%$

c$.$

$85\mathrm{.}7\%$

d$.$

$14\mathrm{.}3\%$

e$.$

$23\mathrm{.}4\%$