Tco Essay Question
Question Type: # Of Questions: # Correct:
Multiple Choice 5 4
Many Multiple Choice 1 1
Matching 1 1
Essay 1 N/A
Grade Details - All Questions 1. Question :
(TCO 3) You have been approved for a $70,000 loan toward the purchase of a new home at 12% interest. The mortgage is for 30 years. How much are the approximately annual payments of the loan? Hint: Assume you pay yearly.
Student Answer: $2613 CORRECT $8690 $5740 None of the above Instructor Explanation: (Chapter 5, pages 132-133)
Answer: $70,000 = C x (1-1/1.12^30)/.12 = C x (1-0.0334)/.12 = C x 8.0552
C = $70,000 / 8.0552 = $8,690
Points Received: 3 of 3 Comments:
2. Question :
(TCO 3) First Choice Bank pays 9% APR compounded quarterly on its business loans. National Emerald Bank pays 19% APR …show more content…
Question :
(TCO 3) Why does money have time value?
Student Answer: Money has value because people believe that they will be able to exchange their money for goods and services at a future date or time. This concept is based upon a dollar in the hand is worth more than a dollar in the future. But when investing it is the amount an investment is worth after one or more periods is the future value of the money. So money means different things depending on the concept that it is being thought of at the time. Instructor Explanation: (Lecture). Possible answers include:
- inflation & postponement of consumption
- earning interest over time Points Received: 6 of 6 Comments:
* Times are displayed in (GMT-07:00) Mountain Time (US &
Multiple Choice 5 4
Many Multiple Choice 1 1
Matching 1 1
Essay 1 N/A
Grade Details - All Questions 1. Question :
(TCO 3) You have been approved for a $70,000 loan toward the purchase of a new home at 12% interest. The mortgage is for 30 years. How much are the approximately annual payments of the loan? Hint: Assume you pay yearly.
Student Answer: $2613 CORRECT $8690 $5740 None of the above Instructor Explanation: (Chapter 5, pages 132-133)
Answer: $70,000 = C x (1-1/1.12^30)/.12 = C x (1-0.0334)/.12 = C x 8.0552
C = $70,000 / 8.0552 = $8,690
Points Received: 3 of 3 Comments:
2. Question :
(TCO 3) First Choice Bank pays 9% APR compounded quarterly on its business loans. National Emerald Bank pays 19% APR …show more content…
Question :
(TCO 3) Why does money have time value?
Student Answer: Money has value because people believe that they will be able to exchange their money for goods and services at a future date or time. This concept is based upon a dollar in the hand is worth more than a dollar in the future. But when investing it is the amount an investment is worth after one or more periods is the future value of the money. So money means different things depending on the concept that it is being thought of at the time. Instructor Explanation: (Lecture). Possible answers include:
- inflation & postponement of consumption
- earning interest over time Points Received: 6 of 6 Comments:
* Times are displayed in (GMT-07:00) Mountain Time (US &