Final exam questions are adapted from Foundations of Financial Management
1. If you invest $8,000 at 12% interest, how much will you have in 7 years?
FV = PV x FV if (n=7, i=12)
FV = 8,000 x 2.211 = 17,688
2. The concept of time value of money is important to financial decision making because:
a. it emphasizes earnings of return on invested capital
b. it recognizes that earning a return makes $1 worth more today than $1 received in the future.
c. It can be applied to future cash flows in order to compare different streams of income.
d. All of the above.
3. An annuity may be defined as:
a. a payment at a fixed interest rate.
b. A series of payments of unequal amount.
c. A series of yearly payments.
d. A series of consecutive payments of equal amounts
4. You are to receive $12,000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today?
a. Present value of an annuity of $1
b. Future value of an annuity
c. Present value of $1
d. Future value of $1
5. As the interest rate increases, the present value of an amount to be received at the end of a fixed period:
c. remains the same
d. not enough information to tell
6. To save for her new born son’s college education, Lea Wilson will invest $1,000 at the beginning of each year for the next 18 years. The interest rate is 12%. What is the future value?
7. XXXXXX XXXXX will receive $1 million in 50 years. The discount rate is 14%. As an alternative, she can receive $2,000 today. Which should she choose?
a. the $1 million dollars in 50 years.
b. $2,000 today.
c. She should be indifferent.
d. Need more information.
8-13 match the following with the items below:
b. future value
c. future value of an annuity
d. discount rate
e. interest factor (IF)
f. present value
g. semi-annual compounding
____ 8. The interest or return is accumulated every six months.
____ 9. The discounted value of a future
I think that there is something missing. Is the last question complete? Also, please advise your deadline on this
You're absolutely correct....there was a portion missing, please see below for details:
____ 9. The discounted value of a future sum or annuity as of today's value. __A_ 10. A series of consecutive payments or receipts of an equal amounts. ____ 11. The percentage rate at which future sums or annuities are brought back to their present value. ____ 12. It is based on the number of periods (n) and how the interest rate (i) and whether Or not there is more than one cash flow ____ 13. The interest rate that equates a future value of an annuity to a given present value.
Please click here for the solutions
More than 5000 online tutoring sessions.
I'm so sorry I already paid $4 for al of the answers and I think that these are from an older version and the final exam has changed I will log in momentarily because it is due by tomorrow if you give me a chance to look at the questions I can then advised if I need more assistance or if these will do....if so I'll be glad to purchase your response....otherwise do you think you will be able to assist with new questions if I pay $30?
Is it going to be a timed exam?
I can assist you with the questions, but can we meet later today as I need to go now? I prefer as late as possible, so when is the latest you can meet me here EST please?
The latest I would like to post this is around 7pm (eastern) so is it possible for you to meet me by 4pm or 4:30 being the latest?
Sure, I will try to be here starting 3 P.M., but 4 P.M. would be the latest
Thank you for the accept and for your trust
No problem...Thank you!
I am here :)
ok I'm going to log in now...
1st set of questions are....
While your responding to this I'm going to add another $15 the instructor advised its only 48 questions so are you good with $30 for 30 questions?
Sure, no problem at all :)
I added $15 did you receive it?
I won't post anymore until you respond to these and then let me know when your ready....Thanks again!
ok, I received the $15 yes, thanks a million. You can keep posting the questions if you want, and I will post the answers to the above 3 sets, but do not click on accept until we are done with all questions. They will take less than 3 hours so no worries there :)
Ok no problem will do:)!
Here is what I have finished so far
Please click here
P.S. Do you need to show calculations?
Are you willing to do the remaining 18 questions? if so I'll add another $18 to the amount (just tell me exactly how to add more funds, the last time I just selected a button called bonus...but that button doesn't exist now)
Nope....it's all multiple choice
hey just making sure your still there...
I am yes :)
Please click here
Waiting for the new set
By the way, yes please go ahead and post the remaining questions. I have answered up to number 29 so far. As for adding the money, you can still do the bonus button thing :)
Sorry Mylz, I have answered 30 questions - sorry about that typing mistake :)
ok here they are:
I have added the money to my account but I don't know how to give it to you...the button for bonus amount doesn't exist anymore and I don't want to post the funds incorrectly
I think if I select accept at that time the button will exist and I can then add the funds
We have like 30mins let me know if that's enough time or not...
Also let me know if you would like me to go ahead and select accept and see if that will allow me add the additional funds...
That is correct Mylz, once you click accept again, the bonus button will show. But do not accept until I provide the full solutions :)
Here is until 42
THIS ANSWER IS LOCKED!You can view this answer by clicking here to Register or Login and paying $3. If you've already paid for this answer, simply Login.
I got an 89.58% which definitley works for me:) Thanks for all your help I really appreciate it!!!
I am not very happy about that mylz, but does it tell you which ones were wrong?
Yes....here it is:
Refer to the figure above. The firm's debt to asset ratio is
A firm's break-even point will rise if
Kuznets Rental Center requires $1,000,000 in financing over the next two years. Kuznets can borrow long-term at 9 percent interest per year for two years. Alternatively, Kuznets can borrow short-term and pay 7 percent interest in the first year. Then, Kuznets projects paying 10 percent interest in the second year. Assuming Kuznets pays off the accrued interest at the end of each year, which of the following statements is true?
Which method of controlling pledged inventory provides the greatest degree of security to the lender?
A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers?
Did you receive any funds...I can't tell if it went through or not...and don't worry about it, I'm happy with the score out of 48 questions only 5 was incorrect....had I did this alone at least 30 would have been incorrect :)
I still owe you one mylz :)
Yes, I received the $15
I have been reviewing the incorrect answers, number 40, we have answered correctly, please check the following link number 36
That is the book's website:
I still am sorry about losing the marks on those questions. I also wanted to check something with you. You said you were ready to offer an additional "Are you willing to do the remaining 18 questions? if so I'll add another $18 to the amount", have you added this amount? I am checking because I was notified of the initial payment of $15, but not the $18