What is the remaining balance on a $100,000 loan after making monthly payments of $733.76 for 10 years, if the interest rate is 8% per year, compounded monthly?
Answer(s): D
On the BAII Plus, press 120 N, 8 divide 12 = I/Y, 100000 PV, 733.76 +/- PMT, CPT FV. On the HP12C, press 120 n, 8 ENTER 12 divide i, 100000 PV, 733.76 CHS PMT, FV. The remaining balance will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.
What are the two rejection areas in using a two-tailed test and the 0.01 level of significance?
Answer(s): E
0.01 means that we are considering a 99% level of significance. For this, we can find the z-value to be +/- 2.58.
If the critical value for a test statistic equals 2.45, what value of the test statistic would guarantee no chance of making a Type I error?
Answer(s): C
The type I error is rejecting the null hypothesis when it is actually true. So if we accept the null hypothesis, there is no possibility of committing the type I error. Therefore, we can only accept the null if our test statistic falls inside the acceptance region between -2.45 and +2.45.
John's great-grandfather left him $50 when he died 80 years ago in an account paying 8% per year, compounded annually. How much would the account hold for John now?
On the BAII Plus, press 80 N, 8 I/Y, 50 PV, 0 PMT, CPT FV. On the HP12C, press 80 n, 8 i, 50 PV, 0 PMT, FV.Note that the answer will be displayed as a negative number. Make sure that the BAII Plus has the P/Y value set to 1.
What quarterly payment is required beginning one period from today to pay off a $4,000 debt, if interest accrues at 8% per year, compounded quarterly, and the debt is to be retired in 5 years?
Answer(s): B
On the BAII Plus, press 20 N, 8 divide 4 = I/Y, 4000 PV, 0 FV, CPT PMT. On the HP12C, press 20 n, 8 ENTER 4 divide i, 4000 PV, 0 FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.
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