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If you were Jad, which bank will offer you the best plan? A) Bank (3) B) Bank (4) C) Bank (2) D) Bank (1)

If you were Jad, which bank will offer you the best plan? A) Bank (3) B) Bank (4) C) Bank (2) D) Bank (1)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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5. Jad plans to open a saving account in Amman City. The 4 banks offer the following rates: - Bank (1) offers 10% per annum compounded quarterly - Bank (2) offers 10% per annum compounded semi-annually - Bank (3) offers 4% per annum compounded quarterly - Bank (4) offers 4% per annum compounded semi-annually . If you were Jad, which bank will offer you the best plan? A) Bank (3) B) Bank (4) C) Bank (2) D) Bank (1) 6. How many months will it take to pay off a $525 loan, with monthly payments of $15 an the end of each month, if the interest rate is 18%, compounded quarterly? A) 45 B) 50 C) 48 D) None of the mentionee 7. An asset purchased for $50,000 is to be depreciated over 5 years using the straight-line method. Salvage value is $10,000. Its book value after 3 years is: A) $24.000 B) $26.000 C) $25.500 D) $25.000 8. How much should be put in an investment with a 10% effective annual rate today to have $10,000 in five years? A) $620.9 B) $6209 C) $6290 D) $6200
Transcribed Image Text:5. Jad plans to open a saving account in Amman City. The 4 banks offer the following rates: - Bank (1) offers 10% per annum compounded quarterly - Bank (2) offers 10% per annum compounded semi-annually - Bank (3) offers 4% per annum compounded quarterly - Bank (4) offers 4% per annum compounded semi-annually . If you were Jad, which bank will offer you the best plan? A) Bank (3) B) Bank (4) C) Bank (2) D) Bank (1) 6. How many months will it take to pay off a $525 loan, with monthly payments of $15 an the end of each month, if the interest rate is 18%, compounded quarterly? A) 45 B) 50 C) 48 D) None of the mentionee 7. An asset purchased for $50,000 is to be depreciated over 5 years using the straight-line method. Salvage value is $10,000. Its book value after 3 years is: A) $24.000 B) $26.000 C) $25.500 D) $25.000 8. How much should be put in an investment with a 10% effective annual rate today to have $10,000 in five years? A) $620.9 B) $6209 C) $6290 D) $6200
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