open-end loan

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    open-end loan

    Paper instructions:
    Ex. 3 & 4
    Question 22 4 points Save
    A patio furniture set sells for $935.00 on the installment plan which includes the finance charge. The payment plan calls for 15% down and the balance in 12 equal payments. The amount of each payment is:

    $89.60
    $77.92
    $66.23
    $140.25
    none of the above
    Question 23 4 points Save
    An example of an open-end loan is a:

    credit card loan
    home mortgage loan
    major appliance loan
    car loan
    none of the above
    Question 24 4 points Save
    The installment price minus the down payment equals the:

    carrying charge
    total of installment payments
    cash price
    net price
    none of the above
    Question 25 4 points Save
    The __________ __________ is the sum of the number of months remaining on a loan divided by the sum of the total number of months of the loan.

    refund fraction
    Rule of 78
    constant ratio
    finance charge
    none of the above

    Question 1 4 points Save
    The amount of interest on an ordinary annuity of $11,600.00 for 5 years at 8% compounded semiannually is:

    $23,269.60
    $116,000.00
    $23,296.60
    $139,269.60
    none of the above
    Question 2 4 points Save
    Brian made deposits of $2,225.00 at the end of each year for eight years. The rate was 10% compounded annually. The value of Brian’s annuity at the end of eight years is:

    $5,218.95
    $17,800.00
    $25,445.10
    $10,178.04
    none of the above
    Question 3 4 points Save
    __________ is the present value of an annuity of $1,500.00 for 6 years at 6% compounded semiannually.

    $12,576.00
    $7,375.50
    $8,125.50
    $14,931.00
    none of the above
    Question 4 4 points Save
    Which of the following is not an example of the use of a sinking fund?

    pay an installment loan
    pay for equipment replacement
    pay for a new factory
    retire bonds
    none of the above
    Question 5 4 points Save
    The payments for an annuity due are made:

    annually
    at the beginning of the period
    at the end of the period
    every month
    none of the above
    Question 6 4 points Save
    An annuity is:

    never used by lotteries
    not made up of equal payments
    a lump sum payment
    a stream of payments
    none of the above
    Question 7 4 points Save
    The sum of the payments of an annuity plus the interest is called the:

    economic sum
    payoff amount
    financial total
    amount of the annuity
    none of the above
    Question 8 4 points Save
    The present value of an ordinary annuity:

    determines the amount of money that needs to be invested today
    represents a lump sum payment
    is equal to the amount of money invested in the future
    can be determined only using the tables
    none of the above
    Question 9 4 points Save
    What is the value of an annuity due at the end of 15 years of quarterly deposits of $2,000.00 with terms of 8% compounded quarterly?

    $228,102.00
    $232,665.14
    $232,666.08
    $228,120.00
    none of the above
    Question 10 4 points Save
    How much should be invested today to provide $1,800.00 in one year? Assume 10% interest compounded annually.

    $1,636.36
    $1,782.00
    $1,620.00
    $493.15
    none of the above
    Question 11 4 points Save
    If interest is compounded, the total amount at the end of the loan or investment term is called the:

    future value
    compound amount
    present value
    both A and B
    none of the above
    Question 12 4 points Save
    Interest compounding:

    calculates interest periodically
    is done only once a year
    calculates the present when the future is known
    results in less interest than simple interest
    none of the above
    Question 13 4 points Save
    The effective rate is:

    the stated rate
    the true semiannual rate
    the annual percentage yield rate
    the nominal rate
    none of the above
    Question 14 4 points Save
    Don deposited $27,500.00 in Trader’s Bank at an interest rate of 12% compounded quarterly. (Use Table 13-1 from the textbook.) The effective rate was:

    14.0%
    12%
    13%
    12.55%
    none of the above
    Question 15 4 points Save
    $15,000.00 for 10 years compounded at 10% quarterly results in how many periods?

    20
    10
    120
    40
    none of the above
    Question 16 4 points Save
    The amount that must be invested today to yield a desired sum in the future is called:

    compound total
    compound interest
    present value
    future value
    none of the above
    Question 17 4 points Save
    The compound interest on a $3,000.00 loan at 7% for 3 years compounded annually is:

    $3,675.13
    $630.00
    $3,630.00
    $675.13
    none of the above
    Question 18 4 points Save
    Using Table 13-2, determine what $4,500.00 for 5 years at 7.25% compounded daily will grow to.

    $6,385.95
    $6,465.89
    $6,358.59
    $6,835.59
    none of the above
    Question 19 4 points Save
    Bill took out a $125,000.00 mortgage on a lake house. The bank charged 2 points at the closing. The points amounted to:

    $750.00
    $7,500.00
    $2,500.00
    $5,000.00
    none of the above
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