ABA-Certified Trust and Financial Advisor Set 3

Collateral is a/an:

Student loans are amortized with monthly payments over a period of 5 to 10 years. To help you service the debt, if you have several student loans outstanding then you can consolidate the loans, at a single blended rate, and extend the repayment period to s long as:

Single payment loan is a loan:

A loan that is repaid in a series of fixed, scheduled payments rather than a lump-sum is referred to as:

In _________ the use of single-payment loan to finance a purchase or pay bills in situations where the funds to be used for repayment are known to be forthcoming in the near future.

A firm that makes secured and unsecured personal loans to qualified individuals, also called a small loan company is called:

With continuous compounding at 10 percent for 30 years, the future value of an initial investment of $2,000 is closest to:

You want to buy an ordinary annuity that will pay you $4,000 a year for the next 20 years. You expect annual interest rates will be 8 percent over that time period.
The maximum price you would be willing to pay for the annuity is closest to:

A profitability index of .85 for a project means that:

BackInSoon, Inc., has estimated that a proposed project's 10-year annual net cash benefit, received each year end, will be $2,500 with an additional terminal benefit of $5,000 at the end of the tenth year. Assuming that these cash inflows satisfy exactly BackInSoon's required rate of return of 8 percent, calculate the initial cash outlay. (Hint: With a desired IRR of 8%, use the IRR formula: ICO = discounted cash flows.)