Can you please send the anwers to these questions Dr. McDougall just deposited $
ID: 2652740 • Letter: C
Question
Can you please send the anwers to these questions
Dr. McDougall just deposited $8,000 into his account at The Elite Bank. The bank will pay 5 percent interest compounded annually on this money. How much interest on interest will Dr. McDougall earn over the next 15 years?
Select one:
a. $2,400.00
b. $8,631.43
c. $2,631.43
d. $10,400.00
e. $10,631.43
Which one of the following situations will cause cash flow to creditors to be negative?
Select one:
a. When the rate of interest on all outstanding loans is decreased
b. When the amount of the loan paid off exceeds both the amount of a new loan plus the interest paid
c. When the amount of a new loan exceeds both the interest and principal payments made
d. When there are no new loans and the interest paid exceeds the principal repaid on a loan
e. When there are no new loans and the current loan is paid off in full
Donald Jones invested $3,500 ten years ago with an insurance company that has paid him 2 percent simple interest on his funds. Darla Ward invested $3,500 ten years ago in a fund that has paid her 2 percent interest, compounded annually. How much more interest has Darla earned than Donald over the 10 years?
Select one:
a. $40.80
b. $66.48
c. $72.78
d. $74.20
e. $64.12
When a corporation issues additional shares of common stock, they do so:
Select one:
a. Only through the private markets.
b. Only through the OTC market.
c. Through a dealer in the secondary market.
d. In the primary market.
e. Through a broker in the secondary market.
Explanation / Answer
Answer-1:
Calculation of interest :
Interest = Future value – Present value
Present value = $8000
Future value = Present value * (1+r)^n
r= rate of interest = 5% =0.05
n =number of years =15
Hence
Interest = 8000*(1+0.05)^15 – 8000
= 8000*2.078928 -8000
= $8631.43