### BUSN 5200 F2 2022: 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 time?

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 […]

Date: December 24th, 2022

### BUSN 5200 F2 2022: The time value concept/calculation used in amortizing a loan is

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.

Date: December 24th, 2022

### BUSN 5200 F2 2022: The present value of an ordinary annuity of \$350 each year for five years, assuming an opportunity cost of 4 percent, is

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.

Date: December 24th, 2022

### BUSN 5200 F2 2022: 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?

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

Date: December 24th, 2022

### BUSN 5200 F2 2022: The present value of \$200 to be received 10 years from today, assuming an opportunity cost of 10 percent, is

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

Date: December 24th, 2022

### BUSN 5200 F2 2022: The future value of \$200 received today and deposited at 8 percent for three years is

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

Date: December 24th, 2022

### BUSN 5200 F2 2022: The present value of \$100 to be received 10 years from today, assuming an opportunity cost of 9 percent, is

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

Date: December 24th, 2022

### BUSN 5200 F2 2022: Everything else being equal, the higher the interest rate, the higher the future value.

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

Date: December 24th, 2022

### BUSN 5200 F2 2022: The present value of a \$20,000 perpetuity at a 7 percent discount rate is

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