1. The future value of an annuity is typically used when analyzing
| [removed] | retirement plans. |
| [removed] | alternative capital budgeting proposals. |
| [removed] | the price of common stock. |
| [removed] | loan amortization schedules. |
2. Under which of the following discounting methods will the present value of an investment be the highest, assuming the same annual interest rate?
| [removed] | Yearly. |
| [removed] | Continuous. |
| [removed] | Quarterly. |
| [removed] | Monthly. |
3. What is the value of this 20 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 4%. The discount rate used to evaluate similar leases is 9%. (Round to the nearest dollar.)
| [removed] | $ 39,856 |
| [removed] | $ 40,000 |
| [removed] | $ 68,000 |
| [removed] | $ 24,361 |
4. Time to attain goal: Elegant Designers have generated sales of $625,000 for the current year. If they can grow their sales at a rate of 12 percent every year, how long will they take to triple their sales? (Round off to the nearest year.)
| [removed] | 9 years |
| [removed] | 10 years |
| [removed] | 8 years |
| [removed] | 7 years |
