Sample questions:
Question 1 (1 point)
What is the accumulated sum of the following stream of payments?
$27,315 every year at the beginning of the year for 13 years, at 5.73 percent, compounded annually.
Round the answer to two decimal places.
Question 2 (1 point)
You have decided to place $102 in equal deposits every month at the beginning of the month into a savings account earning 11.81 percent per year, compounded monthly for the next 3 years. The first deposit is made today. How much money will be in the account at the end of that time period?
Round the answer to two decimal places.
Question 3 (1 point)
Big Brothers, Inc. bo
ows $129,524 from the bank at 9.17 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 5 years. How much will each annual payment be?
Round the answer to two decimal places.
Question 4 (1 point)
You are given an investment to analyze. The cash flows from this investment are
End of yea
1. $1,918
2. $4,064
3. $591
4. $1,223
5. $984
What is the future value of this investment at the end of year five if 7.41 percent per year is the appropriate interest (discount) rate?
Round the answer to two decimal places.
Question 5 (1 point)
What is the present value of a $483 perpetuity discounted back to the present at 6.13 percent.
The answer should be calculated to two decimal places.