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InleLEale complete TF questions. Indicate those 5 to be corrected 1. Facto ing acc rts recehable, unike pledging accounts receivabletypically passes tha nsk of loss on the accom receivable to the buyer T F 2. In paying off a mortgage loan, the amount of the periodic payment that goes toward the reduction of principel increases over the life of the mortgage. T 3. Trade credit is usuaily extended for periods of one year or more. T 4, Discounted at 10%, $1,000 received at the end of each year for three years is worth less than $2,700 received today rate is the rate that U.S. banks charge their most credit-worthy customers, the prime rate is normally 5. Although the prime r higher than the London Interbank Offered Rate (LIBOR) 6. An amount of money to be received in the future is worth less today than the stated present value 7. The cost of NOT taking a discount s higher for terns of 2/10, net e0 than for 2/0, net 30. TF 8. The cost of not taking a 2/10, net 30 cash discount is usualy les than the prime rate $1,000 received three years from now is worth less than $800 received todey. T F 9. Discounted at 6%, received three investment grow to $8,000 in 10 years? A $3,070 B. $3,704 C. $3,105 D. $17,272 11. Dr. Stein has just invested $10,000 for his son (age 7). The money will be used for his He calculates that he will need $21,598 for his son's education by the time the boy goes to school. What rate of return will Dr Stein need to achieve this goal? Choose the closest answer A. 10% B. 8% C. 4% D. 1% 12. To save for her newborm son 's colegeson wlliwe $, at he end of each year for the next 20 years. The interest rate is 10% what is the future value? A. $8,514 B. $2,980 C. $83,440 D. $57.275

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