1 The annual payment on a $1,000 loan over a four-year period at 10% per year interest is $315.42. The unrecovered balance immediately after the first payment has been made is nearest to: A) $684.58 B) $784.58 C) $884.58 D) $1,100 2 If you deposit $1,000 now and are promised payments of $500 three years from now and $1,500 five years from now, the equation that will yield the correct rate of return is: A) B) -1000 = 500(P/F,i,3) + 1500(P/F,i,5) 0 1000+500(P/F,i,3) + 1500(P/F,1,5) C) 1000 = -500(P/F,1,3) - 1500(P/F,i,5) D) 0 = 1000+500(P/F,i,3) + 1500(P/F,i,5) 3 For the equation: 5,000 = 1,000 (P/F,1,1) - 2,000 (P/F,1,2) + 7,000 (P/F,1,7) + 7,000 (P/F,1,9), the number of possible rate of return values is: A) 1 B) 2 C) D) 3 4 4there is more than one sign change in the net cash flow of a rate of return equation, the possible rate of return values will fall in the range of: A) minus infinity to plus infinity B) minus 100% to plus infinity C) minus 100% to plus 100% D) minus infinity to plus 100% 5 When multiple rate of return values are possible for a rate of return equation, one way to come up with a single value which satisfies the equation is: A) Solve for the internal rate of return