Finance

5?If 8% is compounded monthly for 2 years then the number of periods used in a time-value money calculation would be

24 periods

36 periods

None of the other alternatives are correct

2 periods

12 periods

7?If $8000 is invested to earn 8% compounded quarterly, at the end of 6 years the investment will be worth (rounded to the nearest dollar):

$12,332

Some other amount

Not determinable from the information provided

$11,591

$12,867

8?Albert borrows $50,000 from the Mighty Bank today and the Bank requests her to repay her loan in four equal payments along with 10% interest Each of the four payments must be paid at the end of the next three years What is the amount of each payment? Please round to the nearest whole number

None of the other alternatives are correct

$15,106

$20,105 plus 10% interest

$15,106 plus 10% interest

$20,105

10Which of the following is true about compounded interest?

Compounded interest is interest paid on both principal and interest

Compounded interest is interest paid only on the interest

Compounded interest is interest paid only on the principal

Compounded interest is used in theory but not in real life

None of the other alternatives are correct

Solution:

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