How much money can you afford to borrow

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Reference no: EM131994733

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

Reference no: EM131994733

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