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Guidelines_English_Final
تحميل الدليل التدريبي

أسئلة شائعة


 

S U F F O L K   U N I V E R S I T Y

BUSINESS FINANCE

  Instructor: Ki C. Han

 

 

Name _____________________

 

1. ( T or F ) Other things being the same, the future value of an annuity is higher than that of an annuity due.

 

2. ( T or F ) As the interest rate increases, the future value of a lump sum increases.

 

3. ( T or F ) Other things being the same, depositors can earn more interest under quarterly compounding than under monthly compounding.

 

4. If an investor invests $2,500 in a savings account that pays 5% interest, after 20 years he or she will have accumulated _______.

 

a. $3,442                               b. $5,000                               c. $6,221                               d. $6,633

 

5. If an investment earns 11% per year, how long would it take for a sum of money to triple in size?

 

a. between 6 & 7 years       b. between 8 & 9 years       c. between 10 & 11 years   d. between 12 & 13 years

 

6. You want to retire a millionaire.  How much must you invest at the end of each month for the next 40 years to accumulate $1,000,000?  The interest rate is 12% per year.

 

a. $85                                     b. $162                                  c. $320                                   d. $755

 

7. Your broker offers to sell you a note for $13,250 that will pay $2,500.50 per year for 10 years. If you buy the note, what rate of interest will you be earning?

 

a. 7.2%                                b. 10.5%                                  c. 13.6%                                                d. 15.3%

 

8. If an investment of $10,000 today earns 9% in each of the next two years, and then earns 5% per year for three years after that, how much will the investment be worth at the end of the five years?

 

a. $13,300                             b. $13,754                             c. $13,794                             d. $14,402

 

9. You deposit a single amount of $50,000 in a savings account that pays 7.6% annual interest (compounded quarterly). How much will you have at the end of four and one-half years?

 

a. $68,145                             b. $70,163                             c. $72,664                             d. $75,050

 

10. You will deposit $5,000 at the end of each of next 5 years. If the interest rate is 8% (annual compounding), how much will you have accumulated in 20 years?

               

a. $33,460.59                       b. $57,667.89                       c. $72,894.90                       d. $93,049.24

 

11. You have just been notified that you won the lottery. You will be paid 10 annual payments of $1,000,000, with the first one starting today. Using an interest rate of 8% (annual compounding), how much did you really win (in terms of present value)?

 

a. $6,345,879.98                 b. $7,246,887.91                 c. $8,564,778.01                  d. $10,000,000.00

 

12. Ten years ago you invested $10,000. Today you received $25,000. What is your annual return?

 a. 9.6%                               b. 10.5%                                   c. 12.7%                                             d. 13.3%

 

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