Author Question: Aunt Butch borrows 19,500 from the bank at 8 percent annually compounded interest to be repaid in 10 ... (Read 82 times)

jman1234 · **on:** Jul 10, 2018

Aunt Butch borrows 19,500 from the bank at 8 percent annually compounded interest to be repaid in 10 equal annual installments. The interest paid in the third year is ________.

A) 1,336.00
B) 1,560.14
C) 2,906.11
D) 1,947.10

Question 2

What is the expected risk-free rate of return if Asset X, with a beta of 1.5, has an expected return of 20 percent, and the expected market return is 15 percent?

A) 5.0
B) 7.5
C) 15.0
D) 22.5