1 To save $20,000 toward a car, Jack wants to deposit 4 equal year-end amounts to his...
Question:
1
To save $20,000 toward a car, Jack wants to deposit 4 equal year-end amounts to his savings account. The yearly instalment amount given an effective annual interest rate of 12% compounding monthly is calculated using:
Select one:
a.
=PMT(rate,nper,pv,[fv],[type])
b.
=IPMT(rate,per,nper,pv,[fv],[type])
c.
=NPER(rate, nper, pmt, [fv], [type])
d.
=PV(rate,nper,pmt,[fv],[type])
2.
You invest in your savings account $2373 today, $1800 at the end of year one and $3200 at the end of year two. If the interest rate is 12.6% per annum, compounded quarterly, then the amount you will have in exactly three years is closest to:
a.
$8457.00
b.
$8511.88
c.
$9372.47
d.
9273.14
3.
You invest in your savings account $2088 today, $2200 at the end of year one and $3800 at the end of year three. If the interest rate is 9.4% per annum, compounded annually, then the amount you will have in exactly three years is closest to:
a.
$9166.94
b.
$8878.24
c.
$8940.70
d.
9524.14
4.
A bank offers personal loans at 14.4%p.a compounding monthly. The effective annual rate of interest (EAR) is ( to the nearest two decimal places):
a.
14.92%
b.
1.20%
c.
15.20%
d.
15.39%