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Question 1 (0.2 points) David has a savings account with a 6,000 balance today. The account earns an annual percentage rate of interest of 2.50%,
Question 1 (0.2 points) David has a savings account with a 6,000 balance today. The account earns an annual percentage rate of interest of 2.50%, compounded monthly. David plans to make no other deposits or withdrawals. How many years will it take David's account balance to double? Your Answer: Answer Question 2 (0.2 points) How much would you need to gift to the university today to establish a scholarship fund that pays out $10000 in scholarships in one year and grows the scholarship payout by 2% per year? Assume that the university endowment earns 8% per year on its investments. Your Answer: Answer View hint for Question 2 Question 3 (0.2 points) Each time a corporation's stock is a traded on the stock exchange, the corporation receives the proceeds from the trade to finance its operations. True False View hint for Question 3 Question 4 (0.2 points) The risk premium on long-term government bonds is equal to: 1) the rate of return on the long-term bonds minus the T-bill rate. O2) the rate of return on the long-term bonds minus the inflation rate. 3) the rate of return on the long-term bonds plus the corporate bond rate. 04) zero. O 5) 1 percent. View hint for Question 4
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