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Home  arrow Chapter 5  arrow Lecture Exam Questions

Lecture Exam Questions

This activity contains 8 questions.

Question 1.
The compound value interest factor is equal to 1.0 divided by the present value interest factor.

End of Question 1

Question 2.
To evaluate and compare investment proposals, we must adjust all cash flows to a common date.

End of Question 2

Question 3.
An example of an annuity is the interest received on long term bonds.

End of Question 3

Question 4.
If you invest $750 every six months at 8 percent compounded semi-annually, how much would you accumulate at the end of 10 years?

End of Question 4

Question 5.
If you want to have $1700 in seven years, how much money must you put in a savings account today? Assume that the savings account pays 6% and it is compounded quarterly (round to the nearest $10).

End of Question 5

Question 6.
What is the present value of an annuity of $100 received at the end of each year for seven years? The first payment will be received one year from today (round to nearest $10). The discount rate is 13%.

End of Question 6

Question 7.
If you put $10 in a savings account at the beginning of each year for 11 years, how much money will be in the account at the end of the 11th year? Assume that the account earns 11% and round to the nearest $10.

End of Question 7

Question 8.
What is the value of $750 invested at 7.5% compounded quarterly for 4.5 years (round to nearest $1)?

End of Question 8

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