USA: +1(669)289-8683 
Sign in
1. The future value of an annuity is typically used when analyzing
|
retirement plans. |
|
alternative capital budgeting proposals. |
|
the price of common stock. |
|
loan amortization schedules. |
2. Under which of the following discounting methods will the present value of an investment be the highest, assuming the same annual interest rate?
|
Yearly. |
|
Continuous. |
|
Quarterly. |
|
Monthly. |
3. 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.)
|
$ 39,856 |
|
$ 40,000 |
|
$ 68,000 |
|
$ 24,361 |
4. 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.)
9 years
10 years
8 years
7 years
