FINANCE HOMEWORK.
| Practice Question 30 |
Under which of the following discounting methods will the present value of an investment be the highest, assuming the same annual interest rate?
| [removed] | Quarterly. |
| [removed] | Monthly. |
| [removed] | Continuous. |
| [removed] | Yearly. | |
| Practice Question 34 | ||
Which of the following is a similar concept to the compound growth rate of money?
| [removed] | The yield on a bond. |
| [removed] | The discount rate on a capital budgeting project. |
| [removed] | All of these. |
| [removed] | The internal rate of return on an investment. | ||
| Practice Question 29 | |||
The future value of an annuity is typically used when analyzing
| [removed] | loan amortization schedules. |
| [removed] | retirement plans. |
| [removed] | the price of common stock. |
| [removed] | alternative capital budgeting proposals. |
What is the value of this 20 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 4%. The discount rate used to evaluate similar leases is 9%. (Round to the nearest dollar.)
| [removed] | $ 24,361 |
| [removed] | $ 68,000 |
| [removed] | $ 39,856 |
| [removed] | $ 40,000 | |
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Multiple Choice Question 87 |
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Time to attain goal: Elegant Designers have generated sales of $625,000 for the current year. If they can grow their sales at a rate of 12 percent every year, how long will they take to triple their sales? (Round off to the nearest year.)
| [removed] | 8 years |
| [removed] | 9 years |
| [removed] | 7 years |
| [removed] | 10 years | |
| Practice Question 6 | ||
You plan to buy a new car. The price is $30,000 and you will make a down payment of $4,000. Your annual interest rate is 10% and you intend to pay for the car over five years. What will be your monthly payment?
| [removed] | $552.42 |
| [removed] | $637.41 |
| [removed] | $566.67 |
| [removed] | $433.33 |
