Question 1 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Finance companies should be the first place you go to try to get a loan because they specialize in financing. Select one: True False Question 2 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text What is the future value of $250 deposited today at eight percent interest compounded annually for four years? a. $337 b. $333 c. $340 d. $330 Question 3 Answer saved Marked out of 1.00 Not flaggedFlag question Question text Which of the following is a typical example of an instalment loan? a. A demand loan b. A credit card c. A student loan d. A line of credit Question 4 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text What would be the real cost of borrowing in the following case? A home equity loan is advertised at 3.5 percent compounded monthly, however, there is a legal fee of $400 and appraisal fee of $450 to set up the house as collateral. If Sarah needs to borrow $20 000 for one year, at which time will be able to repay the full amount, what is the effective rate of borrowing the $20 000 for the year? a. 7.75% b. 3.56% c. 7.81% d. 4.25% Question 5 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Jessie won a lottery and was given the following choice. He could either take $5150 at the end of each month for 25 years, or a lump sum of $700,000. At what effective annual interest rate would he be indifferent between the two choices? a. 7.4% b. 7.3% c. 11.6% d. 7.7%