multiple choice - full points to the person who answers all questions correctly.
ID: 2623112 • Letter: M
Question
multiple choice - full points to the person who answers all questions correctly. Thanks
11. A series of equal payments made at equal intervals is known as a(n):
a. annuity
b. present value
c. future value
d. discount
12. An annuity due is an annuity where the payments occur at:
a. the end of the year
b. the beginning of the year
c. the middle of the year
d. any time throughout the year
13. Which of the following problems can be solved using present value of annuity tools?
a. calculating a monthly car payment for a 5-year auto loan.
b. determining how much money to invest each month to accumulate $100,000 in 10 years.
c. determining how much money you will accumulate in 6 years if you invest $5,000 a year.
d. calculating the value in 20 years of a $45,000 investment today.
14. An annuity that occurs forever is known as a(n);
a. perpetuity
b. fortuity
c. infinity
d. infinite annuity
15. Which of the following is an example of a perpetuity?
a. stock options
b. bonds
c. preferred stock
d. common stock
16. The common point in time that is central to solving a time value of money problem is known as;
a. the focal date
b. the current period
c. the future period
d. the calendar point
17. A cash flow stream that has several years of zero cash flows before an annuity begins is known as;
a. an ordinary annuity
b. an embedded annuity
c. a deferred annuity
d. an annuity due
21. How much total interest will you earn over the life of a three-year investment of $3,200 that earns 5% simple interest?
a. $3,704
b. $504
c. $160
d. $480
22. What is the future value two years from now of $4,000 invested today at 7% compound interest?
a. $4,560.00
b. $4,579.60
c. $4,000.00
d. $3,440,45
23. What is the future value of $1,800 invested today at 7% for five years?
a. $2,524.59
b. $2,430.00
c. $1,895.21
d. $1,432.35
24. How much interest will be earned on $5,000 deposited today that will earn a 4% annual compound interest rate and will be invested for 6 years?
a. $5,000.00
b. $1,326.60
c. $6,326.60
d. $1,200.00
25. How much interest will be earned on $5,000 deposited today that will earn a 4% compounded quarterly and will be invested for 6 years?
a. $1,326.60
b. $6,326.60
c. $6,348.67
d. $1,348.67
Explanation / Answer
11. A series of equal payments made at equal intervals is known as a(n):
a. annuity
b. present value
c. future value
d. discount
12. An annuity due is an annuity where the payments occur at:
a. the end of the year
b. the beginning of the year
c. the middle of the year
d. any time throughout the year
13. Which of the following problems can be solved using present value of annuity tools?
a. calculating a monthly car payment for a 5-year auto loan.
b. determining how much money to invest each month to accumulate $100,000 in 10 years.
c. determining how much money you will accumulate in 6 years if you invest $5,000 a year.
d. calculating the value in 20 years of a $45,000 investment today.
14. An annuity that occurs forever is known as a(n);
a. perpetuity
b. fortuity
c. infinity
d. infinite annuity
15. Which of the following is an example of a perpetuity?
a. stock options
b. bonds
c. preferred stock
d. common stock
16. The common point in time that is central to solving a time value of money problem is known as;
a. the focal date
b. the current period
c. the future period
d. the calendar point
17. A cash flow stream that has several years of zero cash flows before an annuity begins is known as;
a. an ordinary annuity
b. an embedded annuity
c. a deferred annuity
d. an annuity due
21. How much total interest will you earn over the life of a three-year investment of $3,200 that earns 5% simple interest?
a. $3,704
b. $504
c. $160
d. $480
22. What is the future value two years from now of $4,000 invested today at 7% compound interest?
a. $4,560.00
b. $4,579.60
c. $4,000.00
d. $3,440,45
23. What is the future value of $1,800 invested today at 7% for five years?
a. $2,524.59
b. $2,430.00
c. $1,895.21
d. $1,432.35
24. How much interest will be earned on $5,000 deposited today that will earn a 4% annual compound interest rate and will be invested for 6 years?
a. $5,000.00
b. $1,326.60
c. $6,326.60
d. $1,200.00
25. How much interest will be earned on $5,000 deposited today that will earn a 4% compounded quarterly and will be invested for 6 years?
a. $1,326.60
b. $6,326.60
c. $6,348.67
d. $1,348.67
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.