Exam 14: The Basic Tools of Finance: Present Value Measuring the Time Value of Money

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If you put $300 into an account paying 2 percent interest,what will be the value of this account in 4 years?

(Multiple Choice)

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Question 121

You want to have $100,000 in five years.If the interest rate is 8 percent,about how much do you need to have today?

(Multiple Choice)

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Question 122

You receive $2,000 today which you plan to save for 15 years.If the interest rate is 4 percent,what is the future value of this $2,000?

(Multiple Choice)

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Question 123

You are better off choosing $400 in 4 years rather than $300 today if the interest rate is

(Multiple Choice)

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Question 124

When he was 18,Hussam put $100 into an account at an interest rate of 8 percent.He now has $158.69 in this account.For how many years did Hussam leave this money in his account?

(Multiple Choice)

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Question 125

Dobson Construction has an investment project that would cost $150,000 today and yield a one-time payoff of $167,000 in three years.Among the following interest rates,which is the highest one at which Dobson would find this project profitable?

(Multiple Choice)

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Question 126

You have a bond that entitles you to a one-time payment of $10,000 one year from now.The interest rate is 10 percent per year.How much is the bond worth today?

(Multiple Choice)

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Question 127

If you deposit $1,000 into a savings account that pays you 5% interest per year,approximately how long will it take to double your money?

(Multiple Choice)

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Question 128

Clint puts $200 into an account when the interest rate is 8 percent.Later he checks his balance and finds that he has a balance of about $272.10.How many years did Clint wait to check his balance?

(Multiple Choice)

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Question 129

According to the rule of 70,if the interest rate is 5 percent,how long will it take for the value of a savings account to double?

(Multiple Choice)

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Question 130

Yoyo's Frozen Yogurt,Inc.is thinking of building a new warehouse.They believe that this will give them $50,000 of additional revenue at the end of one year,$60,000 additional revenue at the end of two years,and $70,000 in additional revenue at the end of three years.If the interest rate is 5 percent,Yoyo would be willing to pay

(Multiple Choice)

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Question 131

At an annual interest rate of 14 percent,about how many years will it take $100 to double in value?

(Multiple Choice)

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Question 132

Suppose your uncle offers you $100 today or $150 in 10 years.You would prefer to take the $100 today if the interest rate is

(Multiple Choice)

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Question 133

What is the present value of a payment of $2,000 to be received two years from today if the interest rate is 5%?

(Multiple Choice)

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Question 134

What is the present value of a payment of $200 to be made one year from today if the interest rate is 10 percent?

(Multiple Choice)

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Question 135

Which of the following has a present value of $100?

(Multiple Choice)

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Question 136

What is the future value of $500 one year from today if the interest rate is 6 percent?

(Multiple Choice)

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Question 137

If the interest rate is 4 percent,then you would be equally happy if you received a gift of either $100 today or a gift of

(Multiple Choice)

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Question 138

What is the present value of a payment of $250 one year from today if the interest rate is 4 percent?

(Multiple Choice)

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Question 139

If the interest rate is 7.5 percent,then what is the present value of $4,000 to be received in 6 years?

(Multiple Choice)

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Question 140

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Exam 14: The Basic Tools of Finance: Present Value Measuring the Time Value of Money

If you put $300 into an account paying 2 percent interest,what will be the value of this account in 4 years?

You want to have $100,000 in five years.If the interest rate is 8 percent,about how much do you need to have today?

You receive $2,000 today which you plan to save for 15 years.If the interest rate is 4 percent,what is the future value of this $2,000?

You are better off choosing $400 in 4 years rather than $300 today if the interest rate is

When he was 18,Hussam put $100 into an account at an interest rate of 8 percent.He now has $158.69 in this account.For how many years did Hussam leave this money in his account?

Dobson Construction has an investment project that would cost $150,000 today and yield a one-time payoff of $167,000 in three years.Among the following interest rates,which is the highest one at which Dobson would find this project profitable?

You have a bond that entitles you to a one-time payment of $10,000 one year from now.The interest rate is 10 percent per year.How much is the bond worth today?

If you deposit $1,000 into a savings account that pays you 5% interest per year,approximately how long will it take to double your money?

Clint puts $200 into an account when the interest rate is 8 percent.Later he checks his balance and finds that he has a balance of about $272.10.How many years did Clint wait to check his balance?

According to the rule of 70,if the interest rate is 5 percent,how long will it take for the value of a savings account to double?

At an annual interest rate of 14 percent,about how many years will it take $100 to double in value?

Suppose your uncle offers you $100 today or $150 in 10 years.You would prefer to take the $100 today if the interest rate is

What is the present value of a payment of $2,000 to be received two years from today if the interest rate is 5%?

What is the present value of a payment of $200 to be made one year from today if the interest rate is 10 percent?

Which of the following has a present value of $100?

What is the future value of $500 one year from today if the interest rate is 6 percent?

If the interest rate is 4 percent,then you would be equally happy if you received a gift of either $100 today or a gift of

What is the present value of a payment of $250 one year from today if the interest rate is 4 percent?

If the interest rate is 7.5 percent,then what is the present value of $4,000 to be received in 6 years?

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A