Which of the following accounts has the highest EAR? O A. one that pays 2.7% every six months O B. one that pays 0.5% per month O c. one that pays 4.8% per year O D. one that pays 1.2% every three months Your firm needs to invest in a new delivery truck. The life expectancy of the delivery truck is five years. You can purchase a new delivery truck for an upfront cost of $350,000, or you can lease a truck from the manufacturer for five years for a monthly lease payment of $7.000 (paid at the end of each month). Your firm can borrow at 8% APR with quarterly compounding. The monthly discount rate that you should use to evaluate the truck lease is closest to: O A. 0.5298% OB. 0.6667% OC. 0.7948% OD. 0.6623% A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of $1,718.41. What is the APR of this loan? . 6% . 7% . 8% . 5% If the current inflation rate is 4%, then the nominal rate necessary for you to earn an 7.1% real interest rate on your investment is closest to: O A. 13.7% OB. 18.2% O c. 11.4% OD. 15.9% In which of the following situations would it not be appropriate to use the following formula: PV = Co+C/(1 + ) + C2/(1+0)2 + ... + C /(1 + r)" when determining the present value (PV) of a cash flow stream? O A. when the discount rate is high OB. when short-term and long-term interest rates vary widely O c. when yield curves are flat O D. when the inflation rate is high