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Author Question: The present value of an ordinary annuity of 350 each year for five years, assuming an opportunity ... (Read 149 times)

awywial

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on: Jul 10, 2018
The present value of an ordinary annuity of 350 each year for five years, assuming an opportunity cost of 4 percent, is: (Round to the nearest whole dollar)
 
  A) 288
  B) 1,896
  C) 1,750
  D) 1,558

Question 2

In order to open up your new business you need to take out a loan. First Bank charges 6 compounded quarterly, and Second Bank charges 6.5 compounded semi-annually. From which bank would you prefer to obtain your loan?
 
  A) First Bank
  B) Second Bank
  C) Indifferent


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yuyiding

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Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

A


awywial

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Reply #2 on: Jul 10, 2018
Correct answers!


yuyiding

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Reply #3 on: Jul 10, 2018
Great! Please up vote :D


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