If the minimum required cash is less than the ending cash, acompany must borrow money

True / False

The FV of a single amount of $A is equal to A(1+r)n

True / False

An annuity is a series of equal receipts or payments

True / False

If you borrow $10,000 at 8% to be repaid in 4 years, yourfinance charge for the loan will equal $3200

True / False

In an annuity due, the future value grow by one period less

True / False

Discount rate is also called 'required rate of return'

True / False

If you want to borrow money, your payments must be such thatthey are equal to the future value of money

True / False

The future value of an annuity due is more than that of anordinary annuity

True / False

The future value of an annuity due is (1 - (1+r)ⁿ )/rwhere r is the rate of return and n is the number of periods

True / False

Higher is the discount rate, higher is the present value

True / False

You want to buy a car for cash 4 years from now for a cash priceof $25000. To this end you want to make an annuity deposit eachyear so that you accumulate the required amount. Interest rate is8%. If deposits are made at the begiining of each period, then yourannual payment will be approximately $5548.02

True / False

You want to buy a car for cash 4 years from now for a cash priceof $25000. To this end you want to make an annuity deposit eachyear so that you accumulate the required amount. Interest rate is8%. In the case of annuity due, your annual payments will be equalto approximately $5137.06

True / False

You borrow $8000 at an annual interest rate of 6% to be repaidin 4 equal annual installments. Your annual payment will beapproximately equal to

1. 	a.	2208.73
   	b.	2000
   	c.	2120
   	d.	none of the above

You borrow $8000 at an annual interest rate of 6% to be repaidin 4 equal annual installments. Your total finance charge will beequal to approximately

1. 	a.	480
   	b.	1920
   	c.	1235
   	d.	Not enough information is given to answer the question

You borrow $8000 at an annual interest rate of 6% to be repaidin 4 equal annual installments. Your ending balance at the end ofperiod 2 will be equal to approximately

1. 	a.	2178
   	b.	4133
   	c.	6171
   	d.	none of the above

You borrow $8000 at an annual interest rate of 6% to be repaidin 4 equal annual installments. If you want to repay the who;e loanat the end of period 2, then your payment will be equal toapproximately

1. 	a.	4233
   	b.	6171
   	c.	4000
   	d.	none of the above

You invest $2000 per year at the end of each year for 10 yearsat an interest rate of 9%. The future value of your money will beequal to approximately

1. 	a.	30385.8
   	b.	28000
   	c.	53000.78
   	d.	none of the above

You invest $800 per year at the beginning of each year for 8years at an interest rate of 8%. The future value of your moneywill be equal to approximately

1. 	a.	19508
   	b.	8509.28
   	c.	17508
   	d.	none of the above

You invest $800 per year at the beginning of each year for 8years at an interest rate of 8%. The future value of your moneywill be equal to approximately

1. 	a.	9190
   	b.	18508
   	c.	18989
   	d.	none of the above