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Practice Question 30 |
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Under which of the following discounting methods will the present value of an investment be the highest, assuming the same annual interest rate?
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[removed] |
Quarterly. |
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Monthly. |
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Continuous. |
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Yearly. |
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Practice Question 34 |
Which of the following is a similar concept to the compound growth rate of money?
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The yield on a bond. |
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The discount rate on a capital budgeting project. |
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All of these. |
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The internal rate of return on an investment. |
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Practice Question 29 |
The future value of an annuity is typically used when analyzing
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loan amortization schedules. |
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retirement plans. |
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the price of common stock. |
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alternative capital budgeting proposals. |
What is the value of this 20 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 4%. The discount rate used to evaluate similar leases is 9%. (Round to the nearest dollar.)
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$ 24,361 |
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$ 68,000 |
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$ 39,856 |
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$ 40,000 |
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Multiple Choice Question 87 |
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.)
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8 years |
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9 years |
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7 years |
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10 years |
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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?
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$552.42 |
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$637.41 |
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$566.67 |
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$433.33 |
