Question 1 1. If the effective rate is 7%. What is the nominal rate if compounding is daily. Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points. 1 points Question 2 1. How much do you need to invest today in order to have $2,277 at the end of 6 years if you are sure to earn an interest at the rate of 9%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 1 points Question 3 1. Gertrude Carter and Co. has an outstanding loan that calls for equal annual payments of $14,903 over the 10-year life of the loan. The original loan amount was $100,000 at an APR of 8 percent. How much of the third payment is interest? Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points. 1 points Question 4 1. What is the future value of $4,357 invested for 29 years at 18% if interest is compounded semi-annually? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 1 points Question 5 1. What is the effective rate of 11% compounded monthly? Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points. 1 points Question 6 1. How much do you need to invest today in order to have $14,899 at the end of 12 years if you are sure to earn an interest at the rate of 11%? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 1 points Question 7 1. The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $14,573 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $173,245. At what interest rate would this be a fair deal? Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box. 1 points Question 8 1. How many years it will take you to quadruple (means 4 times) your money if you can earn 11.63% each year? Note: Do not write years in your answer. Simply write the number in the answer box. 1 points Question 9 1. How many years it will take you to double your money if you can earn 19% each year, given that compounding is quarterly? Note: Do not write years in your answer. Simply write the number in the answer box. 1 points Question 10 1. In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years. Do not enter the symbol $ in your answer. Enter your answer as a positive number. Simply enter the answer rounded off to two decimal points. 1 points Question 11 1. What is the future value of $492 invested for 25 years at 16% if interest is compounded semi-annually (twice a year)? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 1 points Question 12 1. How many months it will take to grow your money from $4,760 to $7,928 if you can earn an interest of 11% compounded monthly? Note: Do not write months in your answer. Simply write the number in the answer box. 1 points Question 13 1. Today, you are purchasing a $4,113 11-year car loan at 12 percent. You will pay annually at the end of each year. What is the amount of each payment? 1 points Question 14 1. Kelly starting setting aside funds 4 years ago to buy some new equipment for her firm. She has saved $3,480 each quarter and earned an average rate of return of 9 percent. How much money does she currently have saved for this purpose? 1 points Question 15 1. If you can triple your money in 11 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.. 1 points Question 16 1. If you can double your money in 23 years, what is the implied annual rate of interest, given that compounded in quarterly? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box. 1 points Question 17 1. Barrett Pharmaceuticals is considering a drug project that costs $159,155 today and is expected to generate end-of-year annual cash flows of $14,604, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project? Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box. 1 points Question 18 1. 027: Say, you deposit $3,460 in a bank for 19 years. What is the amount you will have in the bank at the end of 19 years if interest of 7 % compounded monthly for first 8 years and interest of 7 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 1 points Question 19 1. How much do you need to invest today in order to have $9,131 at the end of 25 years if you are sure to earn an interest at the rate of 9%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 1 points Question 20 1. If you receive $412 at the end of each year for the first three years and $601 at the end of each year for the next three years. What is the present value? Assume interest rate is 5%. nt: This is an uneven cash flow problem. Use the CF function and solve for NPV to get the answer. Just enter the number up to 2 decimal points. Do not enter $ in the answer box. 1 points Question 21 1. The ABC Company is considering a new project which will require an initial cash investment of $5,118. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are $5,934, $2,442, $6,599, and $2,545, respectively. If the appropriate discount rate is 8%, compute the NPV of the project. Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. 1 points Question 22 1. What is the future value of annual payments of $5,595 for 19 years at 5 percent? 1 points Question 23 1. Assume interest rate of 3%. A company receives cash flows of $86,130 at the end of years 4, 5, 6, 7, and 8, and cash flows of $280,548 at the end of year 10. Compute the future value of this cash flow stream. Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points. 1 points Question 24 1. If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)? a. $828 b. $827 c. $833 d. $770 e. $1,176 1 points Question 25 1. What is the future value of $3,990 invested for 10 years at 11% if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 1 points Question 26 1. Assume interest rate of 3%. A company receives cash flows of $903 at the end of year 5, $200 at the end of year 7, and $509 at the end of year 10. Compute the future value of this cash flow stream. Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points. 1 points Question 27 1. What is the future value of quarterly payments of $518 for 14 years at 4 percent? 1 points Question 28 1. The ABC Company is considering a new project which will require an initial cash investment of $17,848. The projected cash flows for years 1 through 4 are $6,879, $8,426, $9,661, and $5,223, respectively. If the appropriate discount rate is 10%, compute the NPV of the project. Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. 1 points Question 29 1. What is the future value of $13,948 for 13 years at 5 percent if interest is compounded semi-annually? Note: Do not enter $ in your answer. Simply write down the number that you get as your answer. 1 points Question 31 1. Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6th year. Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. 1 points Question 32 1. How many years it will take to grow your money from $3,793 to $7,126 if you can earn an interest of 10% compounded monthly? Note: Do not write years in your answer. Simply write the number in the answer box. 1 points Question 33 1. Assume interest rate of 4%. Suppose that you receive $97,648 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value. Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points. 1 points Question 34 1. 023A: If you can double your money in 16 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box. 1 points Question 35 1. How many years it will take to grow your money from $3,416 to $7,649 if you can earn an interest of 17% compounded quarterly? Note: Do not write years in your answer. Simply write the number in the answer box. 1 points Question 36 1. 026: Say, you deposit $1,680 in a bank for 18 years. What is the amount you will have in the bank at the end of 18 years if interest of 4 % for first 8 years and interest of 10 % for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.
