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The interest and interest rate on loan 1 are, respectively, a.$1,100 and 100 percent. b

 The interest and interest rate on loan 1 are, respectively,

a.$1,100 and 100 percent.

b.$1,100 and 10 percent.

c.10 percent and $100.

d.$100 and 10 percent.

 

 

 

94.Refer to Exhibit 30-2. The interest and interest rate for loan 2 are, respectively,

a.$500 and 25.0 percent.

b.$2,500 and 25.0 percent.

c.$500 and 12.5 percent.

d.$2,500 and 12.5 percent.

e.none of the above

 

 

 

95.Refer to Exhibit 30-2. The interest and interest rate for loan 3 are, respectively,

a.$500 and 10.5 percent.

b.$10,500 and 5.0 percent.

c.$10,500 and 10.5 percent.

d.$500 and 5.0 percent.

e.none of the above

 

 

 

96.Refer to Exhibit 30-2. The interest and interest rate for loan 4 are, respectively,

a.$11,200 and 12.0 percent.

b.$1,200 and 12.0 percent.

c.$11,200 and 11.2 percent.

d.$1,200 and 11.2 percent.

e.none of the above

 

 

 

97.Refer to Exhibit 30-2. The interest and interest rate for loan 5 are, respectively,

a.$21,600 and 8.0 percent.

b.$21,600 and 10.8 percent.

c.$1,600 and 8.0 percent.

d.$1,600 and 10.8 percent.

e.none of the above

 

 

 

98.What is the approximate present value of $8,000 received four years from today if the interest rate is 12 percent?

a.$12,588

b.$4,882

c.$10,837

d.$5,084

e.$6,908

 

 

 

99.What is the present value of a future income stream of three $12,000 payments to be received one, two, and three years from today if the interest rate is 2.8 percent?

a.$32,799

b.$34,074

c.$28,134

d.$11,046

 

 

 

100.The nominal interest rate is the

a.interest rate in current dollars, unadjusted for expected inflation.

b.real interest rate minus the expected inflation rate.

c.interest rate determined in the loanable funds market.

d.a and c

e.all of the above

 

 

 

101.If there is an increase in the expected inflation rate, then,

a.the supply and demand for loanable funds will decrease.

b.the supply and demand for loanable funds will increase.

c.the supply of loanable funds will decrease, and the demand for loanable funds will increase.

d.the supply of loanable funds will increase, and the demand for loanable funds will decrease.

 

 

 

102.If there is a decrease in the expected inflation rate, then,

a.the nominal interest rate will increase.

b.the nominal interest rate will decrease.

c.the real interest rate will increase.

d.a and c

e.b and c

Dec 09 2019 Read more Less More

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