Question 1

A young graduate invests $10,000 in a mutual fund that pays 8% interest per year.What is the future value of this investment in 12 years?

Accepted Answer

A)  $12,000 
B)  $19,600 
C)  $22,000 
D)  $25,182 
A)  $12,000 
B)  $19,600 
C)  $22,000 
D)  $25,182

Question 2

When you retire you expect to live for another 30 years.During those 30 years you want to be able to withdraw $4,000 at the BEGINNING of every month for living expenses.How much money do you have to have in your retirement account to make this happen.Assume that you can earn 8% on your investments.

Accepted Answer

A)  $545,133.98 
B)  $1,440,000.00 
C)  $548,768.20 
D)  $673,625.34 
A)  $545,133.98 
B)  $1,440,000.00 
C)  $548,768.20 
D)  $673,625.34

Question 3

Which of the following statements is TRUE?

Accepted Answer

A)  In an annuity due payments occur at the end of the period. 
B)  In an ordinary annuity payments occur at the end of the period. 
C)  A perpetuity will mature at some point in the future. 
D)  One cannot calculate the present value of a perpetuity. 
A)  In an annuity due payments occur at the end of the period. 
B)  In an ordinary annuity payments occur at the end of the period. 
C)  A perpetuity will mature at some point in the future. 
D)  One cannot calculate the present value of a perpetuity.

Question 4

Consider the following cash flows each arriving at the end of the year.If the discount rate is 15% COMPOUNDED CONTINOUSLY,what is the present value?

Accepted Answer

A)  $4,255.22 
B)  $4,270.36 
C)  $4,312.07 
D)  $4,354.40 
A)  $4,255.22 
B)  $4,270.36 
C)  $4,312.07 
D)  $4,354.40

Question 5

Uncle Fester puts $50,000 into a bank account earning 6%.You can't withdraw the money until the balance has doubled.How long will you have to leave the money in the account?

Accepted Answer

A)  9 years 
B)  10 years 
C)  11 years 
D)  12 years 
A)  9 years 
B)  10 years 
C)  11 years 
D)  12 years

A young graduate invests $10,000 in a mutual fund that pays 8% interest per year.What is the future value of this investment in 12 years?

When you retire you expect to live for another 30 years.During those 30 years you want to be able to withdraw $4,000 at the BEGINNING of every month for living expenses.How much money do you have to have in your retirement account to make this happen.Assume that you can earn 8% on your investments.

Which of the following statements is TRUE?

Consider the following cash flows each arriving at the end of the year.If the discount rate is 15% COMPOUNDED CONTINOUSLY,what is the present value?

Uncle Fester puts $50,000 into a bank account earning 6%.You can't withdraw the money until the balance has doubled.How long will you have to leave the money in the account?

The Scope of Corporate Finance

Financial Statement and Cash Flow Analysis

Valuing Bonds

Valuing Stocks

The Trade-Off Between Risk and Return

Risk,return,and the Capital Asset Pricing Model

Capital Budgeting Process and Decision Criteria

Cash Flow and Capital Budgeting

Risk and Capital Budgeting

Raising Long-Term Financing

Capital Structure

Long-Term Debt and Leasing

Payout Policy

Financial Planning

Cash Conversion, inventory, and Receivables Management

Cash, payables, and Liquidity Management

International Financial Management

Options

Entrepreneurial Finance and Venture Capital

Mergers, acquisitions, and Corporate Control

Bankruptcy and Financial Distress

Risk Management

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Exam 3: The Time Value of Money

A young graduate invests $10,000 in a mutual fund that pays 8% interest per year.What is the future value of this investment in 12 years?

When you retire you expect to live for another 30 years.During those 30 years you want to be able to withdraw $4,000 at the BEGINNING of every month for living expenses.How much money do you have to have in your retirement account to make this happen.Assume that you can earn 8% on your investments.

Which of the following statements is TRUE?

Consider the following cash flows each arriving at the end of the year.If the discount rate is 15% COMPOUNDED CONTINOUSLY,what is the present value?

Uncle Fester puts $50,000 into a bank account earning 6%.You can't withdraw the money until the balance has doubled.How long will you have to leave the money in the account?

The Scope of Corporate Finance

Financial Statement and Cash Flow Analysis

Valuing Bonds

Valuing Stocks

The Trade-Off Between Risk and Return

Risk,return,and the Capital Asset Pricing Model

Capital Budgeting Process and Decision Criteria

Cash Flow and Capital Budgeting

Risk and Capital Budgeting

Raising Long-Term Financing

Capital Structure

Long-Term Debt and Leasing

Payout Policy

Financial Planning

Cash Conversion, inventory, and Receivables Management

Cash, payables, and Liquidity Management

International Financial Management

Options

Entrepreneurial Finance and Venture Capital

Mergers, acquisitions, and Corporate Control

Bankruptcy and Financial Distress

Risk Management

Filters