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2. (TCO 3) First Choice Bank pays 9% APR compounde...




2. (TCO 3) First Choice Bank pays 9% APR compounded quarterly on its business loans. National Emerald Bank pays 16% APR compounded daily. The EAR for First Choice and National Emerald Bank are: (Points: 3) 9.31% and 17.35%, respectively 9% and 17.50%, respectively 9.31% and 17.50%, respectively 9% and 17.35%, respectively 3. (TCO 3) LED Computer Electronics is considering an investment that will have cash flows of $5,000, $6,000, $7,000 and $10,000 for years 1 through 4. What is the approximate value of this investment today if the appropriate discount rate is 9% per year? (Points: 3) $22,250 $30,520 $22,120 None of the above,Match the following terms with the examples as appropriate: (Points: 4) Matching: Answer Potential Matches: : Pure discount loan 1: You obtained a business loan for four months. The loan will allow you to paid $300 in interest for three months and a final payment of interest and principal at the end of the four month. 2: You obtained a mortgage to buy a home. You will pay $800 per month to cover both interest and principal. 3: a way used by the US government to borrow money on short-term basis. 4: You borrow $1,000 from your best friend. In return, you will give him back $1150 in 3 months. : Amortized Loan : Interest-only Loan : Treasury Bill


Paper#10316 | Written in 18-Jul-2015

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