5. Jad plans to open a saving account in Amman City. The 4 banks offer the followingrates:- Bank (1) offers 10% per annum compounded quarterly- Bank (2) offers 10% per annum compounded semi-annually- Bank (3) offers 4% per annum compounded quarterly- Bank (4) offers 4% per annum compounded semi-annually. If you were Jad, which bank will offer you the best plan?A) Bank (3)B) Bank (4)C) Bank (2)D) Bank (1)6. How many months will it take to pay off a $525 loan, with monthly payments of $15 anthe end of each month, if the interest rate is 18%, compounded quarterly?A) 45B) 50C) 48D) None of the mentionee7. An asset purchased for $50,000 is to be depreciated over 5 years using the straight-linemethod. Salvage value is $10,000. Its book value after 3 years is:A) $24.000B) $26.000C) $25.500D) $25.0008. How much should be put in an investment with a 10% effective annual rate today tohave $10,000 in five years?A) $620.9B) $6209C) $6290D) $6200

Answered: If you were Jad, which bank will offer…

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If you were Jad, which bank will offer you the best plan? A) Bank (3) B) Bank (4) C) Bank (2) D) Bank (1)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Question

5. Jad plans to open a saving account in Amman City. The 4 banks offer the following
rates:
- Bank (1) offers 10% per annum compounded quarterly
- Bank (2) offers 10% per annum compounded semi-annually
- Bank (3) offers 4% per annum compounded quarterly
- Bank (4) offers 4% per annum compounded semi-annually
. If you were Jad, which bank will offer you the best plan?
A) Bank (3)
B) Bank (4)
C) Bank (2)
D) Bank (1)
6. How many months will it take to pay off a $525 loan, with monthly payments of $15 an
the end of each month, if the interest rate is 18%, compounded quarterly?
A) 45
B) 50
C) 48
D) None of the mentionee
7. An asset purchased for $50,000 is to be depreciated over 5 years using the straight-line
method. Salvage value is $10,000. Its book value after 3 years is:
A) $24.000
B) $26.000
C) $25.500
D) $25.000
8. How much should be put in an investment with a 10% effective annual rate today to
have $10,000 in five years?
A) $620.9
B) $6209
C) $6290
D) $6200

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