1. You would like to buy a boat and know you can afford boat payments of $225 a month for 5 years. The interest rate is 4.65%, compounded monthly. How much money can you afford to borrow?
a. $11,256
b. $10,987
c. $11,189
d. $12,025
2. You purchased a house 13 years ago at a cost of $285,000. Today, you sold that house for $500,000. What annual rate of return did you earn on this house
a. 4.33%
b. 5.70%
c. 6.62%
d. 7.52%
3. A firm has total assets of $710,000. There are 45,000 shares of stock outstanding with a market value of $28 a share. The firm has a profit margin of 7.1% and a total asset turnover of 1.29. What is the price-earnings ratio?
a. 16.38
b. 17.99
c. 19.38
d. 20.12