(Solution) If You Invest \$8,000 At 12% Interest, How Much Will You Have In 7 Years? | Snapessays.com

(Solution) If you invest \$8,000 at 12% interest, how much will you have in 7 years?

If you invest \$8,000 at 12% interest, how much will you have in 7 years?

A. \$18,016

B. \$17,688

C. \$80,712

D. \$3616

Ali Shah sets aside 2,000 each year for 5 years. He then withdraws the funds on an equal annual basis for the next 4 years. If Ali wishes to determine the amount of the annuity to be withdrawn each year, he should use the following two tables in this order:

A. present value of an annuity of \$1 future value of an annuity of \$1

B. future value of an annuity of \$1 present value of an annuity of \$1

C. future value of an annuity of \$1 future value of a \$1

D. future value of an annuity of \$1 present value of a \$1

The future value of a \$1000 investment today at 8 percent annual interest compounded semiannually for 5 years is

A. \$1,469

B. \$1,480

C. \$1,555

D. \$1,520

As the interest rate increases, the present value of an amount to be received at the end of a fixed period

A. increases

B. decreases

C. Not enough information to tell

D. remains the same

In determining the future value of a single amount, one measures

A. the future value of periodic payments at a given interest rate.

B. the present value of an amount discounted at a given interest rate.

C. the present value of periodic payments at a given interest rate.

D. the future value of an amount allowed to grow at a given interest rate.

Increasing the number of periods will increase all of the following except

A. the present value of an annuity.

B. the future value of 1.

C. the present value of 1.

D. the future value of an annuity

From the banker's point of view, short-term bank credit is an excellent way of financing

A. fixed assets.

B. repayment of long-term debt.

C. permanent working capital needs.

D. seasonal bulges in inventory and receivables

General Rent-All's officers arrange a \$50,000 loan. The company is required to maintain a minimum checking account balance of 10% of the outstanding loan. This practice is called

A. an installment loan.

B. a discounted loan.

C. a compensating balance.

D. a balloon payment

Large firms tend to be

A. net users of trade credit.

B. firms with high levels of profitability.

C. net suppliers of trade credit.

D. firms with low levels of inventory turnover and accounts receivable turnover.

The three primary policy variables to consider when extending credit include all of the following except

A. credit standards.

C. the level of inflation.

D. collection policy.

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This question was answered on: May 23, 2022

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