What interest rate is being charged if a loan of $10,000 received today is to be repaid in 5 equal end-of-year payments of $2400 each?

Select one:

a. i= 6.4 %

b. i= 5.4%

c. i= 7.4%

d. i= 8.4%

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32)

If Ali has a loan estimated with $5000 at 8% simple interest rate paid annually and the principal amount paid at the end of 5 years, the payment in the third year equal to=

Select one:

a. $5832

b. $5400

c. $6298

d. $400

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34)The repair and maintenance cost of a machine is zero at the end of first quarter, $5,000 at the end of second quarter and then it increases by $5,000 at the end of each quarter thereafter for a total of 3 years. Determine the equivalent uniform payment at the end of each quarter if interest rate is 12% compounded quarterly.

Select one:

a. $ 25742.5 per quarter

b. $ 22742.5 per quarter

c. $ 15742.5 per quarter

d. $ 35742.5 per quarter

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36)

It is better to invest your money only ……………………………………

Select one:

a. if earning power exceeds inflation

b. if inflation equals earning power

c. if inflation exceeds earning power

d. at all times

Answer rating: 100% (QA)

Solution Answer is a 32 Answer is d If principal is paid at the end of 5 years ... View the full answer