İŞLETME FİNANSI I

What is the effective annual rate of a loan quoted as 1 % per month?

What is the value of a house which is expected to generate a monthly rent income of USD 2000 forever if the annual interest rate is 6 % ? (Hint: Use the present value formula for perpetuities)

Which of the following statements is TRUE about the amortization process of loans?

What is the future value of TL 100,000 invested in a bank deposit account which offers 12 % annual interest for 5 years?

A friend of yours asks to borrow some amount of money from you today and promises to pay you TL 5000 3 years later. If you expect to earn an annual interest rate of 10 %, how much money should you lend today?

Lease is a contract whereby one party, the lessor, grants the right to use a particular good for a period of time to the other party, the lessee, which will pay a fixed amount regularly for a certain period of time. When a lease payment is made, it typically covers the month-long period following the payment date. Therefore, lease payments are ________.

Which of the following statements about time value of money is correct?

Computing the future value of some amount of money invested today is called ....., while computing the present value of some amount of money that will be received in the future is called.......

You would like to buy a car to finance some portion of the purchase price of the car with a car loan. You will be paying the loan in equal monthly installments for a specific period of time with a certain interest rate. You set a certain amount of payment for each month according to your monthly budget and ask the bank how much money you can borrow today. In this case,  the account officer in the bank should compute ...............

You would like to accumulate some amount of money at the time you retire by investing equal amounts of money at the end of each month for some years. Earning some fixed interest rate during the period, you wonder how much you should save each month to achive your target amount of money in the future. In this case, you must compute ......