BUSI 530 Corporate Finance Exam 2 Help

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BUSI 530 Corporate Finance Exam 2 Help

corporate finance assignment help1Q1. The APR on a loan must be equal to the effective annual rate when:

  • compounding occurs monthly.
  • compounding occurs annually.
  • the loan is for less than one year.
  • the loan is for more than one year.

Q2. The concept of compound interest refers to:

  • earning interest on the original investment.
  • payment of interest on previously earned interest.
  • investing for a multiyear period of time.
  • determining the APR of the investment.

Q3. What is the APR on a loan that charges interest at the rate of 1.4% per month?

  • 10.20%
  • 14.00%
  • 16.80%
  • 18.16%

Q4. The more frequent the compounding, the higher the future value, other things equal.

  • True
  • False

Q5. What is the minimum nominal rate of return that you should accept if you require a 4% real rate of return and the rate of inflation is expected to average 3.5% during the investment period?

  • 7.36%
  • 7.50%
  • 7.64%
  • 8.01%