# Excel Holden Sheet Quiz 1

Topics: Time, Net present value, Mathematical finance Pages: 2 (356 words) Published: September 20, 2012
Quiz
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Please Note: It is recommended that you save your response as you complete each question.| Question 1 (2 points)

Read the following two statements and determine whether they are correct or incorrect. A. For a given interest rate and cash flow - the longer the time period, the smaller the future value. B. For a given time period and cash flow - the higher the interest rate, the smaller the present value Question 1 options:

| A)| Both statements are incorrect|
| B)| A is incorrect but B is correct|
| C)| A is correct but B is incorrect|
| D)| Both statements are correct|
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Question 2 (2 points)

Would you be willing to receive \$600 today in exchange for receiving \$1000 in 7 periods, if your discount rate was 10% per period? Question 2 options:
| A)| Yes|
| B)| No, the number of periods would have to be less than 5.36| | C)| No, the interest rate would have to be less than 7.57%| | D)| There is not enough information to answer this question.| Save

Question 3 (2 points)

A single cash flow of \$932.47 is available now (in period 0). For this cash flow, the appropriate discount rate per period is 3.9%. What is the period 4 future value of this single cash flow? Question 3 options:

| A)| \$1086.67|
| B)| \$1124.56|
| C)| \$1156.24|
| D)| \$1201.91|
| E)| \$1216.65|
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Question 4 (2 points)

You will receive \$800 in 3 periods and \$1200 in 4 periods. How much are those two cash flows worth today, if your discount rate is 6% per period? Question 4 options:
| A)| \$1475.67|
| B)| \$1504.78|
| C)| \$1568.90|
| D)| \$1599.97|
| E)| \$1622.21|
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Question 5 (2 points)

A single cash flow of \$1673.48 will be received in 4 periods. For this cash flow, the appropriate discount rate per period is 7.8%. What is the present value of this single cash flow? Question 5 options:

| A)| \$975.67|
| B)|...