1233 Words5 Pages

A dollar today is worth more than a dollar to be received in the future because-the dollar can be invested today and earn interes
If you were to put $1,000 in the bank at 6% interest each year for the next 10 years, which table would you use to find the ending balance in your account? - compound sum of an annuity of $1
The FVIFA for the future value of an annuity is 4.5 at 10% for 4 years. If we wish to accumulate $8,000 by the end of 4 years, how much should the annual payments be?-. $1,778
Under what conditions must a distinction be made between money to be received today andmoney to be received in the future?- when idle money can earn a positive return An annuity may be defined as-a series of consecutive payments of equal
An annuity may be defined as-a series of consecutive payments of equal amounts.
You are to receive $12,000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today?-PV $1
As the interest rate increases, the present value of an amount to be received at the end of afixed period-decreases.
As the time period until receipt increases, the present value of an amount at a fixed interest Rate - decreases
A home buyer signed a 20-year, 8% mortgage for $72,500. How much should the annual loan payments be? (Assume annual compounding.)-7384
A retirement plan guarantees to pay to you or your estate a fixed amount for 20 years. At thetime of retirement you will have $73,425 to your credit in the plan. The plan anticipates earning9% interest. How much will your annual benefits be?-8043
After 20 years, 100 shares of stock originally purchased for $1,000 was sold for $5,000.
What was the annual yield on the investment? Choose the closest answer. -8.38%
Mr. Blochirt is creating a university investment fund for his daughter. He will put in $850 per year at the end

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## Fin 515 Week 3

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## Fast Food Nation

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## Chapter 13 1. a $1,000 Bond Has a Coupon of 6 Percent and Matures After 10 Years.

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