Question 1

 

Multiple Answer

(1.0000 points)

 

Question:

How much would you have to pay each year on a $1000 loan to pay it off in five years if the lender charges you 8% interest per year, compounded annually?

 

 

 

$120
$200
$243.32
$250.46
$280

 

 

Question 2

 

Multiple Answer

(1.0000 points)

 

Question:

If you receive $1,000 every year at the end of the year each year for five years, what should you pay for the investment if you wish to earn 8% per year compounded annually?

 

 

 

$5,000
$3,992.71
$3,225
$3,000
$2,992.71

 

 

Question 3

 

Multiple Answer

(1.0000 points)

 

Question:

If you receive $1,000 from an investment in five years, how much is it worth today if you wish to make 8 percent compounded annually?

 

 

 

$1,469.33
$1,000
$920
$680.58
$600

 

 

Question 4

 

Multiple Answer

(1.0000 points)

 

Question:

If you receive $1,000 from an investment in five years,how much is it worth today if you wish to make 8 percent compounded monthly?

 

 

 

$1,000
$920
$680.58
$671.21
$600

 

 

Question 5

 

Multiple Answer

(1.0000 points)

 

Question:

Which of the following discounting methods at a bank would result in the greatest present value on a $10,000 to be received at the end of the year and earning 8%?

 

 

 

Annual discounting
Semi-annual discounting
Quarterly discounting
Monthly discounting
Daily discounting