# The present value of \$200 t b received 10 years from today, assuming an opportunity cost of 10 % , is

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1. The present value of \$200 t b received 10 years from today, assuming an opportunity cost of 10 % , is
a. \$200
b. \$450
c. \$518
d. \$77

2. The future value of a dollar__________as the interest rate increase and ___________the farther in the future an initial deposit is to be received.
a. Increases, increases
b. Decreases; increases
c. Decreases; decreases
d. Increases; decreases

3. The present value of a \$25,0000 perpetuity at a 14% discount rate is
a. \$350,000
b. \$285,000
c. \$178,571
d. \$219,298

4. The future value of \$100 received today and deposited in an account for four years paying semiannual interest of 6% is
a. \$450
b. \$889
c. \$134
d. \$126

5. The future value of an annuity of \$1,000 each quarter for 10 years, deposited at 12 % compounded quarterly is
a. \$75, 401
b. \$17,549
c. \$93, 049
d. \$11, 200

6. Adam borrows \$4,500 at 12% annually compounded interest to be repaid in four equal annual installments. The actual end of year payment is
a. \$2,641
b. \$1,125
c. \$942
d. \$1,482

7. Ashley owns stock in a company which has consistently paid a growing dividend over the last five years. The first year Ashley owned the stock, she received \$1.71 per share, and in the fifth year, she received \$2.89 per share. What is the growth rate of the dividend over the last five years?
a. 75
b. 5%
c. 14%
d. 12%

8. Julian was given a gold coin originally purchased for \$1 by his great grandfather 50 years ago. Today the coin is worth 450. The rate of return realized on the sale of this coin is approximately equal to
a. 13%
b. 50%
c. 7.5%
d. Cannot be determine with give information

9. Ant Bertha borrows \$19,500 from the bank at 8% annually compounded interest to be repaid in 10 equal annual installments. The interest paid in the 3rd year is.
a. \$1,947.10
b. \$1,336.00
c. \$2,906.11
d. \$1,560.14

10. What annual rate of return would Granma Zoe need to earn if she deposits \$1,000 per month into an account beginning one month from today in order to have a total of \$1,000,000 in 30 years?
a. 5.98%
b. 5.28%
c. 6.23%
d. 4.55%

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