# Multiple choice

Thehonest
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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