Isaac realizes that he charged too much on his credit card and has racked up $7,000 in debt. If he can pay $275 each month and the card charges 17.55 percent APR (compounded monthly), how long will it take him to pay off the credit card? How much interest expense will Isaac pay during this […]

The time value concept/calculation used in amortizing a loan is future value of a dollar. future value of an annuity. present value of a dollar. present value of an annuity.

The present value of an ordinary annuity of $350 each year for five years, assuming an opportunity cost of 4 percent, is $288. $1,896. $1,750. $1,558.

Dan plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 10 years. If Dan can earn 10 percent on his contributions, how much will he have at the end of the tenth year? $12,290 $20,000 $31,874 $51,880

The present value of $200 to be received 10 years from today, assuming an opportunity cost of 10 percent, is $ 50. $200. $518. $ 77.

The future value of $200 received today and deposited at 8 percent for three years is $248. $252. $158. $200.

The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is $236. $699. $ 42. $ 75.

Everything else being equal, the higher the interest rate, the higher the future value. True False

The present value of a $20,000 perpetuity at a 7 percent discount rate is $186,915. $285,714. $140,000. $325,000.

Teffan borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in three equal annual installments. The interest paid in the third year is _________. $277.95 $405.00 $352.00 $147.00