Question :
181.Youcouldborrow$2,000todayfromBankAandrepaytheloan,withinterest,bypayingBankA$2,154oneyearfromtoday.Or,youcouldborrowXdollarstodayfromBankBandrepaytheloan,withinterest,bypayingBankB$2,477.10oneyearfromtoday.Inorderf : 1261854
181.Youcouldborrow$2,000todayfromBankAandrepaytheloan,withinterest,bypayingBankA$2,154oneyearfromtoday.Or,youcouldborrowXdollarstodayfromBankBandrepaytheloan,withinterest,bypayingBankB$2,477.10oneyearfromtoday.Inorderforthesameinterestratetoapplytothetwoloans,X=
a.$2,300.00.
b.$2,450.00.
c.$2,500.00.
d.$2,525.50.
182.Youcouldborrow$2,000todayfromBankAandrepaytheloan,withinterest,bypayingBankA$2,125oneyearfromtoday.Or,youcouldborrowXdollarstodayfromBankBandrepaytheloan,withinterest,bypayingBankB$2,200twoyearsfromtoday.Inorderforthesameinterestratetoapplytothetwoloans,X=
a.$1,853.55.
b.$1,898.70.
c.$1,948.79.
d.$2,012.22.
183.Supposeyouwinasmalllotteryandyouaregiventhefollowingchoice:Youcanreceive(1)animmediatepaymentof$5,000or(2)twoannualpayments,eachintheamountof$2,700,withthefirstpaymentcomingoneyearfromnow,andthesecondpaymentcomingtwoyearsfromnow.Youwouldchoosetotakethetwoannualpaymentsiftheinterestrateis
a.2percent,butnotiftheinterestrateis3percent.
b.3percent,butnotiftheinterestrateis4percent.
c.4percent,butnotiftheinterestrateis5percent.
d.5percent,butnotiftheinterestrateis6percent.
184.Supposeyouwinasmalllotteryandyouaregiventhefollowingchoice:Youcanreceive(1)animmediatepaymentof$10,000or(2)twoannualpayments,eachintheamountof$5,200,withthefirstpaymentcomingoneyearfromnow,andthesecondpaymentcomingtwoyearsfromnow.Youwouldchoosetotaketheimmediatepaymentof
$10,000iftheinterestrateis
a.2percent,butnotiftheinterestrateis1percent.
b.3percent,butnotiftheinterestrateis2percent.
c.4percent,butnotiftheinterestrateis3percent.
d.5percent,butnotiftheinterestrateis4percent.
185.Ifyouput$400intoabankaccounttodayanditpromisestopay5%interestfor6years,howmuchisintheaccountattheendofthesixyears?
186.Supposeyouwillreceive$800intwoyears.Iftheinterestrateis5percent,thenthepresentvalueofthisfuturepaymentis
a.$725.62.Itwouldbehigheriftheinterestratewerehigher.
b.$727.28.Itwouldbehigheriftheinterestratewerehigher.
c.$725.62.Itwouldbeloweriftheinterestratewerehigher.
d.$727.28.Itwouldbeloweriftheinterestratewerehigher.
187.Thepresentvalueofafuturepaymenttobereceivedinthreeyearsis$1,000.Iftheinterestrateis5%,whatistheamountthatwillbepaidinthreeyears?
a.$1,150.00
b.$1,157.63
c.$1,215.51
d.$1,250.00
188.Acompanythatproducesbaseballglovesisconsideringbuyingsomenewequipmentthatitexpectswillincreasefutureprofits.Iftheinterestraterises,thenthepresentvalueofthesefutureprofits
a.rises.Thecompanyismorelikelytobuytheequipment.
b.rises.Thecompanyislesslikelytobuytheequipment.
c.falls.Thecompanyismorelikelytobuytheequipment.
d.falls.Thecompanyislesslikelytobuytheequipment.
189.Acompanythatproduceswallpaperisconsideringbuyingsomenewequipmentthatitexpectswillincreasefutureprofits.Iftheinterestratefalls,thenthepresentvalueofthesefutureearnings
a.rises.Thecompanyismorelikelytobuytheequipment.
b.rises.Thecompanyislesslikelytobuytheequipment.
c.falls.Thecompanyismorelikelytobuytheequipment.
d.falls.Thecompanyislesslikelytobuytheequipment.
190.Greg’sTastyIceCreamisconsideringbuildinganewicecreamfactorythatcosts$8.3million.Thecompanyaccountantsbelievethat,notaccountingforinterestcosts,buildingthefactorywillincreaseprofitsby$5millionthefirstyear,$4millionthesecondyearandhavenovaluethereafter.Greg’sTastyIceCreamshouldbuildthefactoryiftheinterestrateis
a.3% but notif it is4%.
b.4% but notif it is5%.
c.5% but notif it is6%.
d.6% but notif it is7%.
0
tolikon200
