FINC 3304 Week 5 Quiz

FINC 3304 Week 5  Quiz | Assignment Help | University of Houston-Victoria

Quiz 5

Question 1

Which one of the following qualifies as an annuity?                            

Question 2

Which one of the following has the highest effective annual rate?                            

Question 3

Which one of the following features distinguishes an ordinary annuity from an annuity due?                            

Question 4

Letitia borrowed $6,000 from her bank two years ago. The loan term is four years. Each year, she must repay the bank $1,500 plus the annual interest. Which type of loan does she have?                                  

Question 5

Which one of the following statements concerning annuities is correct?                             

Question 6

Bill just financed a used car through his credit union. His loan requires payments of $275 a month for five years. Assuming that all payments are paid on time, his last payment will pay off the loan in full. What type of loan does Bill have?                                   

Question 7

Which of the following characteristics apply to a perpetuity?

I. Constant cash flow dollar amount

II. Unequal cash flow dollar amount

III. Limited time period

IV. Infinite time period                               

Question 8

When comparing savings accounts, you should select the account that has the: