Review Test Submission: Quiz 4Instructions This quiz consist of 10 multiple choice questions and covers the material in Chapter 9. Be sure you are in Chapter 9 when you take the quiz.⢠Question 1 Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years?Answer ⢠Question 2 What would be the future value of a loan of $1,000 for two years if the bank offered a 10% interest rate compounded semiannually?Answer ⢠Question 3 Consolidated Freightways is financing a new truck with a loan of $60,000 to be repaid in six annual end-of-year installments of $13,375. What annual interest rate is Consolidated Freightways paying?Answer ⢠Question 4 The future value of $100 received today and deposited at 6 percent for four years isAnswer ⢠Question 5 For positive interest rates, the future value interest factor isAnswer ⢠Question 6 When compounding more than once a year, the true opportunity costs measure of the interest rate is indicated by the:Answer ⢠Question 7 In future value or present value problems, unless stated otherwise, cash flows are assumed to beAnswer ⢠Question 8 For positive interest rates, the present value interest factor isAnswer ⢠Question 9 An annuity with an infinite life is called a (n)Answer ⢠Question 10 For a given interest rate, as the length of time until receipt of the funds increases, the present value interest factorAnswer
