Question 1

If the interest rate is 0% for 10 years, then the present value will be less than the future value.

Accepted Answer

A) True 
 B)False

Question 2

If we will receive $100 per year beginning one year from now for a period of three years with a 12% discount rate, what would be the value of our investment today?

Accepted Answer

A)  $230 
B)  $240 
C)  $250 
D)  $260 
A)  $230 
B)  $240 
C)  $250 
D)  $260

Question 3

What would be the future value of a CD of $1,000 for two years if the bank offered a 10% interest rate compounded semiannually?

Accepted Answer

A)  $1,720 
B)  $1,960 
C)  $1,200 
D)  $1,216 
A)  $1,720 
B)  $1,960 
C)  $1,200 
D)  $1,216

Question 4

Christine has just purchased a used Mercedes for $18,995. She plans to make a $2,500 down payment on the new car. What is the amount of her monthly payment on the remaining loan if she must pay 12% annual interest on a 24-month car loan?

Accepted Answer

A)  $759.53 
B)  $776.48 
C)  $894.16 
D)  $899.87 
A)  $759.53 
B)  $776.48 
C)  $894.16 
D)  $899.87

Question 5

$2,000 invested today at 6% in 3 years would result in a future value of:

Accepted Answer

A)  $2,000 
B)  $2,382 
C)  $6,362 
D)  none of the above 
A)  $2,000 
B)  $2,382 
C)  $6,362 
D)  none of the above

If the interest rate is 0% for 10 years, then the present value will be less than the future value.

If we will receive $100 per year beginning one year from now for a period of three years with a 12% discount rate, what would be the value of our investment today?

What would be the future value of a CD of $1,000 for two years if the bank offered a 10% interest rate compounded semiannually?

Christine has just purchased a used Mercedes for $18,995. She plans to make a $2,500 down payment on the new car. What is the amount of her monthly payment on the remaining loan if she must pay 12% annual interest on a 24-month car loan?

$2,000 invested today at 6% in 3 years would result in a future value of:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

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Exam 9: Time Value of Money

If the interest rate is 0% for 10 years, then the present value will be less than the future value.

If we will receive $100 per year beginning one year from now for a period of three years with a 12% discount rate, what would be the value of our investment today?

What would be the future value of a CD of $1,000 for two years if the bank offered a 10% interest rate compounded semiannually?

Christine has just purchased a used Mercedes for $18,995. She plans to make a $2,500 down payment on the new car. What is the amount of her monthly payment on the remaining loan if she must pay 12% annual interest on a 24-month car loan?

$2,000 invested today at 6% in 3 years would result in a future value of:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters