Test Bank For Mathematics Of Finance 9th Edition By Robert Brown, Steve Kopp Chapter 1-8 Answers are at the End of Each Chapter
Chapter 1 Student name:__________ MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 1) You invest $800 on May 25, 2021. On what day will you have earned exactly $31.96 of interest if your investment earns simple interest at r = 6%?
A) August 31, 2021 B) January 20, 2022 C) January 23, 2022 D) January 25, 2022
2) You invest $50,000 today. It earns simple interest at 15% for the first 5 months, 10% for the next 3 months and 12% for the last 2 months. What is the accumulated value at the end of 10 months?
A) $56,450 B) $56,250 C) $55,542 D) $55,375
3) You buy a stove for $1500 on February 20. The store gives you 4 months "interest free", after which you must pay the $1500. However, the store charges an administration fee of $50, to be paid today. What rate of simple interest, r, are you being charged for this "interest free" plan?
A) 10.49% B) 10.34% C) 10.14% D) 10.00%