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vas simple interest. Which one of the following statements is true if you invest SI IN bank for five years? A) Alpha Bank will pay

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vas simple interest. Which one of the following statements is true if you invest SI IN bank for five years? A) Alpha Bank will pay you a total of $200 in interest over the five years. B) Beta Bank will pay you more interest over the five years than Alpha Bank will C) Alpha Bank will pay you a total of $216.65 in simple interest. D) Alpha Bank will pay you $16.65 of interest on interest. 2) Linens, Ete. currently pays an annual dividend of $1.60 per share. At what rate must the company increase their dividend if they want to pay $2.40 a share three years from now? A) 14.47 percent B) 16.67 percent C) 18.88 percent D) 19.13 percent 3) Lewis borrows $10,000 today at 8.25 percent compounded annually. The terms of the loan require Lewis to repay the principal and interest in one lump sum four years from today. How much will Lewis have to pay in four years? A) $13,300.00 B) $13,466.67 C) $13,731.30 D) $13,864.13 4) You have been offered a business opportunity that will pay you $25,000 in five years if you invest $10,000 today. What is the expected rate of return on this investment? A) 20.11 percent B) 25.74 percent C) 27.02 percent D) 30.00 percent

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