Question 51

Today, your grandmother gave you a gift of $26,000 to help pay for your college education. She told you that this amount was the result of a one-time investment at 8.5% interest 13 years ago. How much did your grandmother originally invest?

Select one:

a. $9,192.45

b. $9,419.25

c. $9,002.99

d. $9,504.55

e. $9,373.49

Question 52

If you are borrowing money, which one of the following rates would you prefer?

Select one:

a. 9% compounded quarterly

b. 9% compounded monthly

c. 9% compounded daily

d. 9% compounded semi-annually

e. 9% paid annually

Question 53

The primary goal of financial management is to minimize compensation.

Select one:

True

False

Question 54

A stock produced total returns of 10%, 12%, -20%, and 36% over the past four years, respectively. What is the average rate of return for this period of time? What is the geometric average return?

Select one:

a. 1.50%, 2.04%

b. 9.50%, 7.60%

c. 3.50%, 2.00%

d. 3.50%, 1.30%

e. 9.50%, 8.70%

Question 55

Larger depreciation expenses decrease the value of the depreciation tax shield, all else equal.

Select one:

True

False