Name: Assignment #2

Instructions:

 Question 1 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

 Question 2 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 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 monthly? \$1,000 \$920 \$680.58 \$671.21 \$600

 Question 4 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 5 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