Karen Price Is 55 Years Old,divorced,and Has Worked at Her

question 82

Multiple Choice

Karen Price is 55 years old,divorced,and has worked at her current job for five years.She is interested in looking at her credit report.Which of the following pieces of information should she find in this report?

• A)The address of the house she lived in as a child
• B)A loan for furniture she paid off 12 years ago
• C)The outstanding balance on the Visa card she has today
• D)The names and addresses of her grown children
• E)The fact that she was late paying her electric bill 8 years ago

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Definitions:

Required Rate

The minimum return that investors expect to earn when they invest in a project, often used as the discount rate in capital budgeting.

Straight-line Depreciation

A method for dispersing the cost of a physical asset across its useful life in even annual allocations.

Discounted Payback

A capital budgeting method used to determine the profitability of an investment by calculating the time it takes for the present value of cash flows to cover the initial investment cost.

Annual Cash Flows

The total amount of money being transferred in and out of a business, considered on a yearly basis.