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(Solved) 1). You just took out a $12,000 loan for your small business. The loan has a four-year term and repayment is in the form of four equal end- of -

I have a quiz that is 10 questions multiple choice except for 1. Really need help with these quick answers. Please see attachment below for questions.

1). You just took out a $12,000 loan for your small business. The loan has a four-year term and

repayment is in the form of four equal end- of - minusâˆ’ year payments. The interest rate on the loan

is 11.5%. Consider the final loan payment. How much principal do you pay in the final payment? A. $3,909.29

B. $3,506.09

C. $3,144.48

D. $2,529.29

E. $2,820.16

2). 5- year regular annuity has a present value of $1,000, and if the interest rate is 10%, what is the

amount of each annuity payment?

A. $240.42â€ƒâ€ƒâ€ƒâ€ƒ

B. $346.87

C. $300.20â€ƒâ€ƒâ€ƒ

D. $315.38â€ƒâ€ƒâ€ƒ

E. $263.80â€ƒ

3). What is the present value of a 5âˆ’year ordinary annuity with annual payments of $200, evaluated at a

15 percent interest rate? A. $670.43â€ƒâ€ƒâ€ƒ

B. $842.41â€ƒâ€ƒâ€ƒ

C. $1,522.64

D. $1,348.48â€ƒâ€ƒâ€ƒ

E. $1,169.56

4). â€ƒThe Shelby Cobra retails for $47,684 (all taxes included). What are the monthly loan

payments for the car if you make a down payment of $4,001, the term is 5 years and the APR is

6.5%? (Car loan payments are made at the end of each month.)

What is the amount of the monthly payment?

$

â€ƒâ€ƒ

(Type a number to the nearest cent.) 5). You just took out a $12,000 loan for your small business. The loan has a four-year term and

repayment is in the form of four equal endâˆ’ofâˆ’year payments. The interest rate on the loan is

11.5%. Consider the final loan payment. How much interest do you pay in the final payment?

A. $403.20

B. $1,089.13

C. $764.81

D. $350.61

E. $1,380.00

6). Three years from now you will begin receiving annual payments of $7,200. This will continue for 14

years. At a discount rate of 5.8%, what is the present value of this stream of cash flows? A. $51,253.11

B. $54,523.00

C. $64,045.86

D. $57,216.29

E. $60,534.84

7). You just graduated and you expect to work for ten years and then to leave for the Australian "Outback"

bush country. You figure you can save $1,000 a year for the first five years and $2,000 a year for the next

five years. These savings cash flows will start one year from now. In addition, your family has just given

you a $5,000 graduation gift. If you put the gift now and your future savings when they start, into an

account that pays 8% compoundedannually, what will your financial "stake" be when you leave for

Australia 10 years from now. (Round to the nearest whole dollar) A. $16,651â€ƒâ€ƒâ€ƒâ€ƒ

B. $28,393â€ƒâ€ƒâ€ƒ

C. $31,148â€ƒâ€ƒâ€ƒ

D. $20,000

E. $21,432

8). The time value concept/calculation used in amortizing a loan is:

A. Present value of an annuity

B. Future value of a dollar

C. Present value of a dollarâ€ƒâ€ƒâ€ƒâ€ƒ

D. Future value of an annuity

9). The present value of a $25,000 perpetuity at a 14 percent discount rate is: (Round to the

nearest whole dollar)

A. $285,000â€ƒâ€ƒâ€ƒ

B. $350,000â€ƒâ€ƒâ€ƒ

C. $219,298

D. $178,571â€ƒ

10). You just took out a $12,000 loan for your small business. The loan has a four year term and

repayment is in the form of four equal endâˆ’ofâˆ’year payments. The interest rate on the loan is 11.5%.

What are your annual loan payments? A. $3,246.84

B. $3,144.83

C. $3,909.29

D. $3,867.92

E. $3,287.78

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