QUESTION 81 The annual percentage rate of interest on terms 4/8, net 28 is 73%. TRUE OR FALSE?

ces Problem 6-13 Unbiased Expectations Theory (LG6-7) Suppose we observe the following rates: 1R₁ = 10%, 1R2 = 12%. If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year interest rate expected one year from now, E(21)? Note: Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). Interest rate %

62 > > 63 65 66 68 > > You purchase a certificate of deposit that earns an advertised rate of 1.75% interest per year. What is your real rate of return if the actual inflation rate is 1.9%? 3.65% -0.15% 1.75% 0.15%

QUESTION 8 Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,400, $1,600, $1,600, and $1,900, respectively. (Do not round intermediate calculations and round your final answer to 2 decimal places.) FUTURE VALUE?

13 When interest is calculated for periods shorter than a year, the formula to calculate interest is: Multiple Choice   I = P × R × T, where I = interest calculated, P = principal, R = annual interest rate, and T = number of months.   I = P × R × T, where I = interest calculated, P = principal, R = annual interest rate, and T = (number of months ÷ 12).   I = P × R × T, where I = interest calculated, P = principal, R = monthly interest rate, and T = (number of months ÷ 12).   I = (MV − P)/T, where I = interest calculated, MV = maturity value, P = principal and T = number of months.

Present Value What is the present value of a $3,200 deposit in year 3 and another $3,700 deposit at the end of year 7 if interest rates are 8 percent? Multiple Choice О $4,026.08 $4,699.18 О $4,783.24 О $3,036.00

Question 22 If the annual interest rate is 5%, what is the rate for each quarter? Your answer: O 5% O 1.5% O 1.25% Clear answer Back Next

Question 19 What is the effective semi-annual interest rate of a loan 8.45% quoted annual interest rate compounded monthly? %4.23 4.545% 6.25% 4.3%

Question 6.10 To accumulate 36,419.74 at the end of 3n years, deposits of 174 are made at the end of the first n years, and deposits of 87 are made at the end of each of the next 2n years. The annual effective interest rate is i, and you are given that: (1+1)" = 3 Calculate /. A 7.64% B 10.51% C 10.75% D 14.81% E 15.05%