An Investor Wants to Determine How Much Interest He Must $\le$

question 32

Multiple Choice

An investor wants to determine how much interest he must earn to be able to make the payments on a 10-year mortgage which has increasing annual payments. The problem is summarized in the accompanying spreadsheet. The investor has enough money to make an initial investment of $9,000 and hopes he can earn 12%, compounded quarterly, on his investments. He would like to know how low his annual return can be and still allow him to make his payments from interest income. What constraint must be entered in the Risk Solver Platform (RSP) task pane?

• A)$D$7:$D$16 \(\le\) $E$7:$E$16
• B)$C$7:$D$16 \(\ge\) $E$7:$E$16
• C)$C$7:$C$16 \(\ge\) $E$7:$E$16
• D)$D$7:$D$16 \(\ge\) $E$7:$E$16

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Definitions:

Training

The process of enhancing the skills, knowledge, and competencies of employees through various educational methods and programs.

Compensating

Offering something, typically money, to make up for loss, suffering, or injury, or to balance out a perceived deficiency in a business transaction.

Evaluating

The process of making judgments about the value, performance, or quality of a product, service, or outcome.

Personal Selling Process

The series of steps salespeople follow when selling a product or service, including prospecting, approaching, presenting, handling objections, closing, and follow-up.