Danny Joe borrows 10,500 from the bank at 11 percent annually ...

[NguyenJ]

Danny Joe borrows 10,500 from the bank at 11 percent annually compounded interest to be repaid in six equal annual installments. The interest paid in the first year is ________.
 
  A) 1,155
  B) 2,481
  C)  144
  D) 1,327

Question 2

An increase in the beta of a corporation, all else being the same, indicates ________.
 
  A) a decrease in risk, a higher required rate of return, and hence a lower share price
  B) an increase in risk, a higher required rate of return, and hence a lower share price
  C) a decrease in risk, a lower required rate of return, and hence a higher share price
  D) an increase in risk, a lower required rate of return, and hence a higher share price

[GCabra]

Answer to Question 1

A

Answer to Question 2

B