# Excel Holden Sheet Quiz 1

**Topics:**Time, Net present value, Mathematical finance

**Pages:**2 (356 words)

**Published:**September 20, 2012

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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)|...

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