###### PowerPoint – Interpret and Analyze How Digital Media Is used to Influence
December 30, 2018
###### Time Cost CPM scheduling analysis table
December 30, 2018

Q1. \$15,000.00 for 10 years compounded at 10% quarterly results in how many periods?

a. 20

b. 10

c. 120

d. 40

e. none of the above

Q2. The effective rate is:

a. the stated rate

b. the true semiannual rate

c. the annual percentage yield rate

d. the nominal rate

e. the beginning rate

Q3. If you borrow \$1000 at an APR of 12% and pay it back in one year making the same payment amount each month, what principal (P) and interest (I) have you paid when the load is paid off?

a. P=\$1200, I=\$120

b. P=\$1000, I=\$120

c. P=\$1000, I=\$66.19

d. P=\$1200, I=\$65.50

e. P=\$1000, I=\$60.00

Q4. The compound interest on a \$3,000.00 loan at 7% for 3 years compounded annually is:

a. \$3,675.13

b. \$630.00

c. \$3,630.00

d. \$675.13

e. none of the above

Q5. Starting with \$4,500.00, what will it grow to in 5 years at 7.25% compounded daily.

a. \$6,385.95

b. \$6,465.89

c. \$6,358.59

d. \$6,835.59

e. \$9,444.50

Q6. Your company needs to have \$40,465.00 five years from now. If the interest rate at your bank is 6% compounded quarterly, how much will you need to deposit into your account today in order to have the desired amount in 5 years?

a. \$29,999.26

b. \$29,666.92

c. \$30,044.05

d. \$30,000.00

e. \$20,044.05

Q7. If interest is compounded, the total amount at the end of the loan or investment term is called the:

a. future value

b. compound amount

c. present value

d. both A and B

e. none of the above

Q8. Sunfresh Markets made a \$13,000.00 investment in a compound interest account paying 8% compounded monthly. What was the value of its investment at the end of 8 months?

a. \$14,770.18

b. \$14,077.18

c. \$14,707.18

d. \$14,077.81

e. \$14,177.81

Q9. In a loan of 8% compounded quarterly, what is the periodic interest rate?

a. 4%

b. 6%

c. 2.5%

d. 2%

Q10. Payments into a sinking fund are always made when?

a. when the funds are available

b. at the end of each period

c. lump sum at the beginning of the sinking fund

d. at the beginning of each period

e. none of the above

Q11. When a series of equal periodic payments is put into an interest bearing account for a specific number of periods, this is known as a(n):

a. annuity

b. discounting procedure

c. compound interest plan

d. high risk investment

Q12. A(n) __________ __________ is an annuity with payments made at the end of each period.

a. annuity certain

b. term annuity

c. annuity due

d. annual annuity

e. none of the above

Q13. What is the value of an annuity due at the end of 15 years of quarterly deposits of \$2,000.00 with terms of 8% compounded quarterly?

a. \$228,102.00

b. \$232,665.14

c. \$232,666.08

d. \$228,120.00

Q14. An annuity without a specific number of payment periods is termed a(n):

a. non-standard annuity

b. annual annuity

c. contingent annuity

d. annuity certain

Q15. The amount of interest on an ordinary annuity of \$11,600.00 for 5 years at 8% compounded semiannually is:

a. \$23,269.60

b. \$116,000.00

c. \$23,296.60

d. \$139,269.60

Q16. __________ is the amount of a \$3,000.00 annuity due at 12% compounded semiannually for 3 years.

a. \$41,814.50

b. \$43,068.93

c. \$22,180.50

d. \$334,321.00

e. none of the above

Q17. __________ is the present value of an annuity of \$1,500.00 for 6 years at 6% compounded semiannually.

a. \$12,576.00

b. \$7,375.50

c. \$8,125.50

d. \$14,931.00

e. none of the above

Q18. Derek purchased a home for \$225,000.00 with a down payment of \$30,000.00 at 8.75% for 25 years. Since then the rate has fallen to 5.25%. How much less would his monthly payment be if he purchased the house with the mortgage at 5.25%?

a. \$443.85

b. \$434.58

c. \$423.58

d. \$434.85

e. \$419.85

Q19. The difference between the monthly payments on a \$95,000.00 mortgage at 5% versus 6% for 25 years is:

a. \$65.05

b. \$56.05

c. \$56.50

d. \$56.60

Q20. Brian bought a new ranch style home for \$180,000.00. Brian made a 30 percent down payment. Assuming a rate of 6.5% on a 30 year mortgage, Brian’s monthly payment is:

a. \$1,783.80

b. \$1,982.00

c. \$594.60

d. \$796.32

Q21. Points represent:

a. monthly payments

b. a 3 percent up front payment

c. an additional cost of financing

d. 2 percent of the amount borrowed

Q22. Derek purchased a home for \$225,000.00 with a down payment of \$30,000.00 at 8.75% for 25 years. Since then the rate has fallen to 5.25%. How much less would his monthly payment be if he purchased the house with the mortgage at 5.25%?

a. \$443.85

b. \$434.58

c. \$443.58

d. \$434.85

Q23. Bill took out a \$125,000.00 mortgage on a lake house. The bank charged 2 points at the closing. The points amounted to:

a. \$750.00

b. \$7,500.00

c. \$2,500.00

d. \$5,000.00

Q24. All payments on a mortgage are required to be paid on a __________ basis.

a. semiannually

b. biweekly

c. monthly

d. weekly

e. agreed

Q25. The primary mortgage on a home is called the:

a. collateral

b. real mortgage

c. first mortgage

d. FNMA

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