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Skyline Industries will need $1.8 million 5 years from now to replace some equipment currently, the firm has some extra each and would like to establish a savings account for this purpose. The account pays 5.25% interest compounded annually, How much company must the company deposit today to fully fund the equipment purchase (no additional payments will be put into the account during the 5 year period) A. $1, 279, 947, 20 B. $1, 298, 407, 21 C. $1, 350, 868, 47 D. $1, 393, 676, 52 E. $1, 421, 308, 18 First Bank offers personal loans at 7.60% compounded monthly, second Bank offers similar loans at 7.75% compounded semiannually. Which one of the following statements is correct concerning these loans? A. The First Bank loan has an effective rate of 7.67%. B. Bank loan has an effective rate of 8.03%. C. The annual percentage rate for the second Bank loans is 7.90%. D. Borrowers should prefer the loans offered by Second Bank E. The First Bank offers the better deal on loans. A credit card has an annual percentage rate of 12.90% and charges interest monthly. The effective animal rale on this account A. will he less than 12.90%. B. can either he lets than or equal to 12.90%. C. is 12.90%. D. can either be greater than or equal to 12.90%. E will be greater than 12.90%. The Deltona Instrument Company has 9.00% coupon bonds on the market with 6 years left to maturity. bonds make annual payments. If the bond currently sells for $974.60. what is its YTM? A. 8.82% B 8.90% C. 8.98% D. 9.58% E. 9.63% Plastics, Inc. will pay an annual dividend of SI .85 next year. The company just announced that future dividends will be increasing by 2.25% annually for a very long time. Mow much are you willing to share of this stock if you require a 16.00% return? A. $13.45 B $13.61

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