What monthly payment, beginning next month, is required over the next 60 months to pay off a $10,000 debt today, if interest is charged at 14% per year, compounded monthly?
Answer(s): E
On the BAII Plus, press 60 N, 14 divide 12 = I/Y, 10000 PV, 0 FV, CPT PMT. On the HP12C, press 60 n, 14 ENTER 12 divide i, 10000 PV, 0 FV, PMT. Make sure the BAII Plus has the P/Y value set to 1.
What value does the null hypothesis make a claim about?
Answer(s): B
The null hypothesis makes claims regarding the values that the population parameter may take.
For a negatively skewed, unimodal distribution, which of the following relationships holds?
Answer(s): C
In a negatively skewed distribution, very low values are more common than correspondingly large values. This skews the distribution to the left, moving the mean to the left of the median.
The research analyst for a stock brokerage firm wants to compare the dispersion in the price-earnings ratios for a group of common stock with their return on investment. For the price-earnings ratios, the mean is 10.9 and the standard deviation is 1.8. The mean return on investment is 25 percent and the standard deviation is 5.2 percent. What is the relative dispersion for the price earnings ratios and return on investment?
The respective CVs are found from (s*100)/mean. Ratios: 1.8*100/10.9 = 16.5% and investment: 5.2*100/25 = 20.8%.
What semiannual deposit is needed to accumulate $5,000 in 5 years if the account pays 6% per year, compounded semiannually, assuming that the first deposit is made in 6 months and also assuming that the account already has $750 in it today?
Answer(s): D
On the BAII Plus, press 10 N, 6 divide 2 = I/Y, 750 PV, 5000 +/- FV, CPT PMT. On the HP12C, press 10 n, 6 ENTER 2 divide i, 750 PV, 5000 CHS FV, PMT. Note that the answer this time is a positive number. This means that the $348.23 is a deposit in addition to the $750 original deposit. The $5,000 is entered as a negative number, because the $750 and the $348.23 are deposits and the $5,000 is a withdrawal. Make sure the BAII Plus has the value of P/Y set to 1.
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