What is the future value of $1,200 a year for 40 years at 8 percent interest? Assume annual compounding. Answer
Selected Answer: c. $310,868
Correct Answer: c. $310,868

. Question 2 .0.5 out of 0.5 points

Gerold invested $6,200 in an account that pays 5 percent simple interest. How much money will he have at the end of ten years? Answer
Selected Answer: b. $9,300
Correct Answer: b. $9,300

. Question 3 .0.5 out of 0.5 points

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1,400 a month for 20 years. You can earn 6 percent on your money. Which option should you take and why? Answer

Selected Answer: b. You should accept the $200,000 because the payments are only worth $195,413 to you today. Correct Answer: b. You should accept the $200,000 because the payments are only worth $195,413 to you today.

. Question 4 .0 out of 0.5 points

You just received a $5,000 gift from your grandmother. You have decided to save this money so that you can gift it to your grandchildren 50 years from now. How much additional money will you have to gift to your grandchildren if you can earn an average of 8.5 percent instead of just 8 percent on your savings? Answer

Selected Answers: b. $58,811.99

Correct Answers: d. $60,923.52

. Question 5 .0 out of 0.5 points

You own a classic automobile that is currently valued at $147,900. If the value increases by 6.5 percent annually, how much will the automobile be worth ten years from now? Answer
Selected Answer: c. $251,008.17
Correct Answer: b. $277,628.63

. Question 6 .0.5 out of 0.5 points

You just won the grand prize in a national writing contest! As your prize, you will receive $2,000 a month for ten years. If...

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Advance Finance
Insert Name
Insert Institution
Advance Finance
Question 1: Periodic Interest Rates
Calculating Periodic Rate and Effective Annual Interest Rate
Applied Formula by Fouque and Papanicolaou (2011):
Effective interest rate per period, (i) = ( 1 + ( r / m ) )m – 1
Effective interest rate for t periods, it = ( 1 + i )t - 1
or a single equation it = ( 1 + ( r / m ) )mt - 1.
The rate per compounding period...

...
You submitted this quiz on Sun 26 Oct 2014 8:17 PM CST. You got a score of 95.00out of 100.00. You can attempt again, if you'd like.
窗体顶端
Please read all questions and instructions carefully. Note that you only need to enter answers in terms of numbers and without any symbols (including $, %, commas, etc.). Enter all monetary answers to the nearest dollar (no decimal/cents) and all interest rates to the nearest on hundredth of a percent (two decimal places). Read the...

...
Health Finance
Chapters 9, 14
9.1) A. What is the opportunity cost rate?
B. How is it used in time value analysis?
C. Is this a single number that is used in all situations?
A - Opportunity Cost = the cost associated with alternative uses of the same funds. Example, if monies are used for one investment, it is no longer available for other uses, so an opportunity cost arises. Because on investment decision automatically...

...Ref: 3.0
Lebanese International University
School of Business
Department of Marketing
Fall 2013-2014
BMTH210 – Business & Managerial Math
Instructors:Salloum Wael, Jarouch Madi, Ollaik Assala, Amine-El Dima, Abboud Souad,
Khoury Gaby, Berjaoui Mohammad, Moullem Hana, Houmani Hassan, Makki Mohammad, Saifi
Walid, Khatib Mohammad, Mahdi Hassan, Jundi Hicham.
Office Hours: Business School
Lecture Days: MW
Note: If these office hours are not convenient, please make an appointment at...

...
Finance: Capital Investment Desirability
University Affiliation
Student’s Name
Date
Depending on a specific business, the competitive business environment offers a variety of opportunities with varying desirability. Companies are therefore tasked with the problem of making choices. In order to make a viable option, financial and investment decisions have to be made, a fact that is achieved by using capital budgeting techniques.
A number of investment...

...FIN 301 HW
Chapter 1 (Odds 1-17)
1. Define shareholder wealth. Explain how it is measured
Shareholder wealth is represented by the market price of a firm’s common stock. It is measured by the market value of the shareholders’ common stock holdings
2. Which type of corporation is more likely to be a shareholder wealth maximizer -one with wide ownership and no owners directly involved in the firms management or one that is closely held.
A closely held corporation
3. It has been argued...

...Which of the following is incorrect, regarding the beta?
Select one:
a. Beta for market portfolio is less than one
b. Assets with beta less than one are said to have lower systematic risk
c. Beta is a measure of total risk
d. Beta for market portfolio is less than one and beta is a measure of total risk
Shares in Flamingo Hotel Holdings have a beta of 2.7. If the expected return on the market portfolio is 8.2% and the risk free rate is 3.3%, what return should investors demand on...

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