Question 411 pts   Assume a home mortgage of $200,000, with an...

Question 411 pts

Assume a home mortgage of $200,000, with an interest rate of 5.5% for 30 years (monthly payments). If you pay an extra $300 per month towards the principle of the loan, how many months will it be until you pay off the loan?

Group of answer choices

269

188

223

214

Flag question: Question 42Question 421 pts

(Assuming all other factors remain constant) When calculating a PV, if the discount (interest) rate is lower, what will the effect be?

Group of answer choices

The PV will be higher

The PV will be lower

Cannot tell what would happen without more information

The PV will remain the same.

Flag question: Question 43Question 431 pts

You invest all the money you earned during your summer sales job (a total of $45,000) into the stock of a company that produces fat and carb-free Cheetos. The company stock is expected to earn a 14% annual return; however, five years later it is only worth $20,000. Turns out there wasn't as much demand for fat and carb-free Cheetos as you had hoped. What is the annual rate of return on your investment?

Group of answer choices

-10%

-15%

-20%

-25%

Flag question: Question 44Question 441 pts

Given a payment of $3,000 per year for 20 years and a 7% annual discount rate, what is the present value?

Group of answer choices

$3,000

$31,782

$64,443

$40,219

Flag question: Question 45Question 451 pts

Which of the following statements most accurately represents our discussion on the role of a corporation?

Group of answer choices

Maximizing shareholder value is most important.

Maximizing sales is most important

Maximizing profits is most important

Minimizing costs is most important.

Flag question: Question 46Question 461 pts

Your company's inventory turnover ratio decreased from 35 to 16. What does this mean?

Group of answer choices

You have become less efficient at managing inventory.

Your sales have definitely increased.

You are selling all of your inventory more frequently.

You are selling through all your inventory every 16 days.

Flag question: Question 47Question 471 pts

If you invest $7,500 per year for 33 years at 11.00% (annual), what is the future value (FV)?

Group of answer choices

$2,066,469.17

$500,771.15

$247,500.00

$2,877,256.14

Flag question: Question 48Question 481 pts

Tom wants to retire in 20 years and move back to his home town. He would like his investments to be worth $1,200,000 when he does so. Assuming a rate of return of 12.5%, how much does Tom need to save each month, in order to reach his goal?

Group of answer choices

$1,133.69

$5,000.00

$461.87

$3,333.33

Flag question: Question 49Question 491 pts

(Assuming all other factors remain constant) When calculating FV, if the interest rate is higher, what will be the effect?

Group of answer choices

The FV will be higher

There will be no effect on the FV

The FV will be lower

Cannot tell what would happen in this case without more information.

Flag question: Question 50Question 501 pts

Assume that you will retire in 30 years. You plan to be retired for a total of 30 years. You wish to withdraw the equivalent of $50,000 per year (in today's dollars) from your retirement fund each year that you are retired (assume that there will not be any adjustments for inflation during your retirement—You will withdraw the same dollar amount every year that you are retired). The expected inflation rate for the next 30 years is 3%. You can earn 10% on your investments prior to retirement and you plan to earn 7% on your investments during retirement. How much do you need to invest each month (beginning right now) in order to be able to afford to retire?

Group of answer choices

$919

$454

$666

$877