finance test 2

The Jones Brothers recently established a trust fund that will provide annual scholarships of $12,000 indefinitely. These annual scholarships are: a perpetuity
Which one of the following statements concerning annuities is correct? An annuity due has payments that occur at the beginning of each time period.
Lee pays 1 percent per month interest on his credit card account. When his monthly rate is multiplied by 12, the resulting answer is referred to as the: annual percentage rate
Janis just won a scholarship that will pay her $500 a month, starting today, and continuing for the next 48 months. Which one of the following terms best describes these scholarship payments? annuity due
Which one of the following qualifies as an annuity payment? weekly grocery bill
The stated interest rate is the interest rate expressed: in terms of the interest payment made each period
Christie is buying a new car today and is paying a $500 cash down payment. She will finance the balance at 6.3 percent interest. Her loan requires 36 equal monthly payments of $450 each with the first payment due 30 days from today. Which one of the following statements is correct concerning this purchase? To compute the initial loan amount, you must use a monthly interest rate.
Which one of the following is the annuity present value formula? C x ({1 – [1/(1 + r)t]}/r)
Which one of the following can be classified as an annuity but not as a perpetuity? Equal annual payments for life
Travis is buying a car and will finance it with a loan that requires monthly payments of $265 for the next four years. His car payments can be described by which one of the following terms? annuity

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