You will discover 2 . 0 hours with this exam.
1 ) This is a closed book exam. You could only have pens, pencils and a calculator at your office.
2 . A formula sheet is mounted on the end of the exam. You might detach the formula piece from the exam.
Please submit the scanning device sheet as you go along inside the exam. You will not be given additional time at the end in the exam to fill it.
3. Find the best possible answer for each multiple-choice question four. Each of the 30 MC queries is worth you mark
There are 14 webpages in this examination.
|2. |Poor Dog, Inc. borrowed $135, 000 through the bank today. They must pay back this cash over the subsequent six years by making monthly | | |payments of $2, 215. 10. Precisely what is the interest rate on the loan? Exhibit your answer with gross annual compounding. | |A) |5. 98% | |B) |6. 63% | |C) |4. 71% | |D) |5. 65% | |E) |5. 80%
|3. |How much do you pay for securities that pays off you $500 every 4 months for 10 years if you require a returning of 8% per | | |year compounded regular monthly? | |A) |$11, 228. 48 | |B) |$15, 000. 00 | |C) |$10, 260. 00 | |D) |$13, 724. 90 | |E) |$10, two hundred. 23
|4. |You can generate 5% annually compounded yearly for the next 4 years, and then 8% annually compounded quarterly for five years. | | |What is the average annual compounded rate of return above the 9 yr period? Express your answer with monthly compounding. | |A) | | |B) |6. 82% | |C) |6. 97% | |D) |6. 43% | |E) |6. 59%
|5. |You have purchased a family house for $540, 000 with a $200, 000 down payment. You are going to get a home loan at the TF bank for | | |the stability. TF is definitely charging a rate of 5. 8% annually compounded semi-annually on five year term mortgages. You want to make weekly| | |payments...