1. The present value of $200 t b received 10 years from today, assuming an opportunity cost of 10 % , is
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
4. The future value of $100 received today and deposited in an account for four years paying semiannual interest of 6% is
5. The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 % compounded quarterly is
a. $75, 401
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
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?
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
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.
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?