You are interested in investing your money in a bank account which of the following banks provides you with the highest LAR? b. a. Rank 1, 6.0% with monthly compounding Bank 2,60% with annual compounding Bank 3, 6.0% with quarterly compounding d. Barik 4; 6.0% with daily (365-day) compounding

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
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14-17

16.
17.
15
You are interested in investing your money in a bank account which of the
following banks provides you with the highest LAR?
a. Bank 1, 6.0% with monthly compounding
Bank 2, 6.0% with annual compounding
Bank 3, 6.0% with quarterly compounding
d. Bank 4, 6.0% with daily (365-day) compounding
Hanna invests $600,000 in a project at year O which expects to have cash flows
of $120,000,-$80,000, $155,000 and $50,000 at year 1, 2, 3, and 4, respectively.
If the annual interest rate is 14%, how much does Honna make for lose) from this
project?
a. $422,069.65
b. $406,420.33
c. -$456,144.40
d. $405,109.80
Emily takes a car loan of $40,000 with an annual interest rate of 5.5%. The car
loan is a 4-year term. How much is her monthly payment?
a. $939.40
b. $935.17
C. $930.26
d. $929.11
Which of the following statements is/are CORRECT?
a. Toby, Inc. raises capital when investors buy and sell its shares in the secondary
market.
b. NASDAQ is an example of an auction market.
c. The corporation is the seller in the primary market.
d. All of the above are correct.
Transcribed Image Text:16. 17. 15 You are interested in investing your money in a bank account which of the following banks provides you with the highest LAR? a. Bank 1, 6.0% with monthly compounding Bank 2, 6.0% with annual compounding Bank 3, 6.0% with quarterly compounding d. Bank 4, 6.0% with daily (365-day) compounding Hanna invests $600,000 in a project at year O which expects to have cash flows of $120,000,-$80,000, $155,000 and $50,000 at year 1, 2, 3, and 4, respectively. If the annual interest rate is 14%, how much does Honna make for lose) from this project? a. $422,069.65 b. $406,420.33 c. -$456,144.40 d. $405,109.80 Emily takes a car loan of $40,000 with an annual interest rate of 5.5%. The car loan is a 4-year term. How much is her monthly payment? a. $939.40 b. $935.17 C. $930.26 d. $929.11 Which of the following statements is/are CORRECT? a. Toby, Inc. raises capital when investors buy and sell its shares in the secondary market. b. NASDAQ is an example of an auction market. c. The corporation is the seller in the primary market. d. All of the above are correct.
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