7. Three for five in one week's time! is the slogan of Slyfox Loan Company. This means that they will give you $3 today

7. "Three for five in one week's time!" is the slogan of Slyfox Loan Company. This means that they will give you 53 today and you will payback 55 in one week's time. The Annual Percentage rate on this offer is: A 3,466.67% B. 86.67% C93.96% D. 1,733.33% 8. Ramona wants to choose the better of two savings accounts with the University Credit Union and needs your advice. The Share Account pays 4.08 percent, with daily compounding and the Ordinary Savings Account pays 4.10 percent with semi-annual compounding, which account should she choose (based on appropriate rounding) A. Share Account B. Ordinary Savings Account C. She is virtually indifferent D. Neither 9. Blackwell bonds have a face value of $1,000 and are currently quoted at 98.4. The bonds have a 2.5% coupon rate paid semi-annually. What is the current yield on these bonds? A. 4.67 percent B. 4.78 percent C. 5.08 percent D. 5.33 percent 10. Your vacation to Disney was great, but it unfortunately ran a bit over budget. All is not lost. You just received an offer in the mail to transfer your $5,000 balance from your current credit card, which charges an annual rate of 18.7 percent, to a new credit card charging a rate of 9.4 percent. You plan to make payments of $510 a month on the debt. How many less payments will you have to make to pay off this debt if you transfer the balance to the new card? A. 0.36 payments B. 0.48 payments C. 1.10 payments D. 1.23 payments Year 11. You are considering two independent projects as shown in table below, both of which have been assigned a discount rate of 15 percent. Based on the profitability index, which project would you choose and why? Project A Project B Cash Flow Year Cash Flow 0 -$46,000 0 550,000 1 $32,000 1 $18,000 2 $27.000 2 $54,000 A. You should accept both projects B. You should reject both projects C. You should accept project A and reject project B D. You should accept project B and reject project A

7. "Three for five in one week's time!" is the slogan of Slyfox Loan Company. This means that they will give you $3 today and you will payback $5 in one week's time. The Annual Percentage rate on this offer is: A. 3,466.67% B. 86.67% C. 93.96% D. 1,733.33% 8. Ramona wants to choose the better of two savings accounts with the University Credit Union and needs your advice. The Share Account pays 4.08 percent, with daily compounding and the Ordinary Savings Account pays 4.10 percent with semi-annual compounding. Which account should she choose (based on appropriate rounding)? A. Share Account B. Ordinary Savings Account C. She is virtually indifferent D. Neither 9. Blackwell bonds have a face value of $1,000 and are currently quoted at 98.4. The bonds have a 2.5% coupon rate paid semi-annually. What is the current yield on these bonds? A. 4.67 percent B. 4.78 percent C. 5.08 percent D. 5.33 percent 10. Your vacation to Disney was great, but it unfortunately ran a bit over budget. All is not lost You just received an offer in the mail to transfer your $5,000 balance from your current credit card, which charges an annual rate of 18.7 percent, to a new credit card charging a rate of 9.4 percent. You plan to make payments of $510 a month on the debt. How many less payments will you have to make to pay off this debt if you transfer the balance to the new card? A. 0.36 payments B. 0.48 payments C. 1.10 payments D. 1.23 payments 11. You are considering two independent projects as shown in table below, both of which have been assigned a discount rate of 15 percent. Based on the profitability index, which project would you choose and why? Project A Year Cash Flow 0 $46,000 1 $32,000 2 $27.000 A. You should accept both projects B. You should reject both projects C. You should accept project A and reject project B D. You should accept project B and reject project A Project B Year Cash Flow 0 -$50,000 1 $18,000 2 $54,000