1. Unit 4:The Jones want to retire with about $2,000,000 in their retirement account.They plan to invest $13,000 a year into the account and expect the account to earn 5% annual interest.About how long until the Jones can retire?
2. 154 years
3. 57 years
4. 45 years
5. 39 years

1 points

QUESTION 42

1. Unit 4:You have $1,735 for a down payment on a truck.You think you can afford to make monthly payments of $217.The dealer offers you a 60 month loan at 2.19%.About how much truck can you afford to buy?
2. $12,321
3. $13,020
4. $14,755
5. $14,056

2 points

QUESTION 43

1. Unit 6:XYZ has a projected project to install a new press.The expected cash revenue is $175,000 per year.Expected yearly expenses are: Operating Costs of $50,000; Rent of $17,000; Utilities of $20,500; andDepreciationof $10,000.The tax rate is 35%.
2. What is the expected After-Tax Cash Flow from Operations [OCF] for the first year?
3. $65,500
4. $60,375
5. $77,500
6. $97,500

1 points

QUESTION 44

1. Unit 4:Larry is considering two bank loans.Bank A is offering a loan at 5.21% interest paid at the end of one year, annual compounding.Bank B is offering a 5.15% interest loan, compounded quarterly, paid at the end of one year.Which bank loan should Larry select?
2. Bank A as the nominal rateof 5.21%is better than the nominal rate0f 5.15 %for Bank B.
3. Bank B as theeffective rate of 5.15%is better than the effectiverate of 5.21% for Bank A
4. Bank B as the effective rate of 5.25% is better than the effective rate of 5.21% for Bank A
5. Bank A as the effective rate of 5.21% is better than the effective rate of 5.25% for Bank B