Exam 4: Introduction to Valuation: the Time Value of Money

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Suppose you need to pay your air-ticket of $2400 for a European trip next year.If you deposit money now,you can earn 7% per annum.How much do you need to invest today?

(Multiple Choice)

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Question 41

Elaine has just received an insurance settlement of $25 000.She wants to save this money until her daughter goes to university.If she can earn an average of 6.5 per cent,compounded annually,how much will she have saved when her daughter enters university 8 years from now?

(Multiple Choice)

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Question 42

When you were born,your parents opened an investment account in your name and deposited $500 into the account.The account has earned an average annual rate of return of 4.8 per cent.Today,the account is valued at $36 911.22.How old are you?

(Multiple Choice)

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Question 43

The method of calculating interest once during the entire life of the loan,on the original sum borrowed,is known as:

(Multiple Choice)

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Question 44

You have been offered an investment that promises to double your money every 9 years.Considering the rule of 72,what is your approximate rate of return on the investment?

(Multiple Choice)

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Question 45

Which of the following will increase the future value of a lump sum investment? I.decreasing the interest rate II.increasing the interest rate III.increasing the time period IV.decreasing the amount of the lump sum investment

(Multiple Choice)

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Question 46

The value of an investment after one or more periods of time is called the:

(Multiple Choice)

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Question 47

Showing 41 - 47 of 47

Suppose you need to pay your air-ticket of $2400 for a European trip next year.If you deposit money now,you can earn 7% per annum.How much do you need to invest today?

Elaine has just received an insurance settlement of $25 000.She wants to save this money until her daughter goes to university.If she can earn an average of 6.5 per cent,compounded annually,how much will she have saved when her daughter enters university 8 years from now?

When you were born,your parents opened an investment account in your name and deposited $500 into the account.The account has earned an average annual rate of return of 4.8 per cent.Today,the account is valued at $36 911.22.How old are you?

The method of calculating interest once during the entire life of the loan,on the original sum borrowed,is known as:

You have been offered an investment that promises to double your money every 9 years.Considering the rule of 72,what is your approximate rate of return on the investment?

Which of the following will increase the future value of a lump sum investment? I.decreasing the interest rate II.increasing the interest rate III.increasing the time period IV.decreasing the amount of the lump sum investment

The value of an investment after one or more periods of time is called the:

Introduction to Financial Management

Financial Statements, Taxes, and Cash Flow

Working With Financial Statements

Discounted Cash Flow Valuation

Interest Rates and Bond Valuation

Equity Markets and Stock Valuation

Net Present Value and Other Investment Criteria

Making Capital Investment Decisions

Some Lessons From Capital Market History

Risk and Return

Long-Term Financing

Leverage and Capital Structure

Dividends and Dividend Policy

Raising Capital

Short-Term Financial Planning

Working Capital Management

International Aspects of Financial Management

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