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1.) You can borrow $25,000 at an annual interest rate of 6% compounded quarterly

ID: 1185797 • Letter: 1

Question

1.) You can borrow $25,000 at an annual interest rate of 6% compounded quarterly. Equal payment will be made every quarter over a five year period. What will the quarterly payment be?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

2.) You can borrow $25,000 at an annual interest rate of 6% compounded monthly. Equal payment will be made every quarter over a five year period. What is the quarterly interest rate?

I=1.5%

I=1.51%

I=1.52%

I=1.53%

none

3.) You can borrow $25,000 at an annual interest rate of 6% compounded monthly. Equal payment will be made every quarter over a five year period. What is the annual effective interest rate?

6.17%

6.14%

6.09%

6.00%

None

4.) You can borrow $25,000 at an annual interest rate of 8% compounded monthly. Equal payment will be made every quarter over a five year period. What will the quarterly payment be?

5.) How long will it take an investment to triple if the interest rate is 6% compounded quarterly?

18.85years

18.45years

18.25years

18.05years

None

6.) A series of equal quarterly payments of $8,000 for 15 years is equivalent to what present amount at an interest rate of 9% compounded semi-yearly?

$63,731.15

$82,189.23

$80,753.22

$64,485.51

None

7.) You are making $1,000 quarterly deposits into a fund that pays interest at a rate of 8% compounded quarterly. What would be the balance at the end of 10 years?

$60,402

$82,189.23

$80,753.22

$64,485.51

None

8.) If $500 is deposited into a savings account at the beginning of each quarter for 10 years and the account earns 8% interest rate compounded quarterly, what will be the balance at the end of 10 years?

$28,933

$30,201

$31,421

$30,805

none

Explanation / Answer

1) 1400

2) 1.5 %

3) 09%

4) 1500

5) 45 years

6) 80753.22

7) 82189.23

8) 30805

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