# Multiple choice

**Thehonest**

1. John House has taken a 20-year, $250,000 mortgage on his house at an interest rate of 6% per year. What is the value of the mortgage after the payment of the fifth annual installment?

a. $128,958.41

b. $211,689.53

c. $141,019.50

d. None of the above

2. If the present value of $1.00 received n years from today at an interest rate of r is 0.3855, then what is the future value of $1.00 invested today at an interest rate of r% for n years?

a. $1.3855

b. $2.594

c. $1.70

d. Not enough information to solve the problem

3. If the present value of $1.00 received n years from today at an interest rate of r is 0.621, then what is the future value of $1.00 invested today at an interest rate of r% for n years?

a. $1.00

b. $1.61

c. $1. 621

d. Not enough information to solve the problem

4. If the future value of $1 invested today at an interest rate of r% for n years is 9.6463, what is the present value of $1 to be received in n years at r% interest rate?

a. $9.6463

b. $1.00

c. $0.1037

d. None of the above

- 7 years ago

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