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QUESTION 21 Today, you are purchasing a 10-year, 6 percent annuity at a cost of $50,000. The annuity will pay annual payments. What is the
QUESTION 21 Today, you are purchasing a 10-year, 6 percent annuity at a cost of $50,000. The annuity will pay annual payments. What is the amount of each payment? (Regular Annuity Problem) a $6,793.40 b. $7,522.40 O $9,703.40 Od $16,703.40 QUESTION 22 MacElroy Trucks recently purchased a new rig costing $130,000. They financed this purchase at 12 percent interest with monthly payments of $3,423.40. Approximately how many months will it take the firm to pay off this debt? (Regular Annuity Problem) O a. 48 months O b.56 months O c. 80 months d. 66 months QUESTION 23 A preferred stock (perpetuity) pays an annual dividend of $10. If you want to earn 8 percent on this investment, what is the maximum amount you should pay to purchase one share of this stock today? a. 363 Ob. 877 O . 587 d. S125 QUESTION 24 What is the effective annual rate of 10 percent compounded quarterly? O a 10.00% Ob. 10.219 O 10.38% Od. 10.47% QUESTION 25 The stated interest payment made on a bond is called the: O a. face value O b. yield to maturity. Oc. coupon. O d. maturity rate
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