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Question 25 (12 points) (continued from the previous question) Which of the following statements are correct about the problem you solved in the previous question?
Question 25 (12 points) (continued from the previous question) Which of the following statements are correct about the problem you solved in the previous question? (select all that apply - 1.e. just one or as many as all of them) If the retirement account had earned 2% instead of 4%, on 12/31/15 you would have collected a higher amount. If you had contributed $7,000 per year instead of $5,000, on 12/31/15 you would have collected a higher amount. If you redo the problem using simple interest instead of compound interest, the amount you will collect on 12/31/15 will be lower If you redo the problem using interest that compounds quarterly instead of annually, the amount you will collect on 12/31/15 will be higher Question 23 (12 points) A company is considering buying a piece of machinery that will allow material savings on the electricity bill but also requires periodic maintenance. In order to determine whether it is worth it to make the purchase, which of the following statements are true? (select all that apply - i.e. just one or as many as all of them) Knowing the purchase price of the machinery is not necessary It is always necessary to use a future value table If the present value of all cash inflows is lower than the present value of all cash outflows, the company should not make the purchase An annuity table is always going to be used Previous Page Next Page Page 18 of 20 Question 25 (12 points) (continued from the previous question) Which of the following statements are correct about the problem you solved in the previous question? (select all that apply - 1.e. just one or as many as all of them) If the retirement account had earned 2% instead of 4%, on 12/31/15 you would have collected a higher amount. If you had contributed $7,000 per year instead of $5,000, on 12/31/15 you would have collected a higher amount. If you redo the problem using simple interest instead of compound interest, the amount you will collect on 12/31/15 will be lower If you redo the problem using interest that compounds quarterly instead of annually, the amount you will collect on 12/31/15 will be higher Question 23 (12 points) A company is considering buying a piece of machinery that will allow material savings on the electricity bill but also requires periodic maintenance. In order to determine whether it is worth it to make the purchase, which of the following statements are true? (select all that apply - i.e. just one or as many as all of them) Knowing the purchase price of the machinery is not necessary It is always necessary to use a future value table If the present value of all cash inflows is lower than the present value of all cash outflows, the company should not make the purchase An annuity table is always going to be used Previous Page Next Page Page 18 of 20
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