Question 15

Large companies tend to do which of the following types of business planning?

		strategic planning
		operational planning
		budgeting and forecasting
		all of the above

5 points

Question 16

Determine how much $1,000 deposited in a savings account paying 8% compounded annually will be worth after 5 years.

		$5,526
		$784
		$1,400
		$1,469

5 points

Question 17

What is the rate of interest on a $10,000 loan that is to be repaid in 10 equal annual installments of $1,917.

		8%
		10%
		14%
		15%
		16%

5 points

Question 18

Five years after an accident, you received $100,000 to pay the medical expenses incurred at the time of the accident. What is the present value (at the time of the accident) of the payment? Assume interest rates are 9%.

		$153,900
		$68,100
		$65,000
		$70,800

5 points

Question 19

The stock market is:

		an interconnected network of brokers and exchanges licensed by the government to assist investors in trading securities.
		located in a large building in New York City called the stock exchange.
		an exchange that allows people to trade stock certificates in person.
		very much like a department store in that stocks from different industries are traded.

5 points

Question 20

Ralph has decided to put $2,400 a year (at the end of each year) into an IRA over his 40 year working life and then retire. What will Ralph have at retirement if the account earns 10 percent compounded annually?

		$394,786
		$ 23,470
		$1,062,223
		$810,917