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What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of 4,900 ?
What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of 4,900 ? Select the correct answer. a. $315.30 b. $318.50 c. $316.90 d. $320.10 e. $321.70 Suppose People's Bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make nterest payments of $400.00 at the end of each quarter and then pay off the principal amount at the end of the rear. What is the effective anmual rate on the loan? Select the correct answer. a. 18.39% b. 17.6996 C. 16.29% d. 15.5996 e. 16.99% What is the PV of an annuity due with 5 payments of $7,400 at an interest rate of 5.5% ? Select the correct answer. a. $33,331.91 b. $33,338.11 c. $33,341.21 d. $33,328.81 e. $33,335.01 Suppose a State of North Carolina bond will pay $1,000 ten years from now. If the going interest rate on these 10 -year bonds is 9.6%, how much is the bond worth today? Select the correct answer. a. $412.25 b. $393.65 c. $406.05 d. $399.85 e. $418.45
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