文档介绍：Exercise B Student Name_________________________ Student ID ____________
________ 1. Alpha Bank pays interest of 4 pounded annually. Beta Bank pays 4 percent simple interest. Which one of the following statements is true if you invest $1,000 in each bank for five years? d
a. Alpha Bank will pay you a total of $200 in interest over the five years.
b. Beta Bank will pay you more interest over the five years than Alpha Bank will.
c. Alpha Bank will pay you a total of $ in simple interest.
d. Alpha Bank will pay you $ of interest on interest.
________ 2. Martha wants to have $10,000 in her investment account ten years from now. How much does she have to deposit today to achieve her goal if she can earn 8 pounded annually? a
a. $4, b. $4, c. $5, d. $5,
________ 3. Jim has $1,650 saved today. He wants to buy a different vehicle as soon as he has $3,200 saved. How long does Jim have to wait to get his vehicle if he earns pounded annually? c
a. years b. years c. years d. years
________ 4. Linens, Etc. currently pays an annual dividend of $ per share. At what rate must pany increase their dividend if they want to pay $ a share three years from now? a
a. percent b. percent c. percent d. percent
________ 5. All else equal, the present value will _____ as the rate of return decrea