FIN 100 Quiz 4
If $1,000 were invested now at a 12% interest rate compounded annually, what would be the value of the investment in two years?
In future value or present value problems, unless stated otherwise, cash flows are assumed to be
The basic future and present value equations contain four variables. Which one of the following is not included?
For positive interest rates, the future value interest factor is
You have just won a lottery! You will receive $50,000 a year beginning one year from now for 20 years. If your required rate of return is 10%, what is the present value of your winning lottery ticket?
A series of equal payments or receipts that occur at the beginning of each of a number of time periods is referred to as:
An investment will mature in 20 years. Its maturity value is $1,000. If the discount rate is 7%, what is the present value of the investment?
Which of the following terms best describes an annuity due?
Consolidated Freightways is financing a new truck with a loan of $60,000 to be repaid in six annual end-of-year installments of $13,375. What annual interest rate is Consolidated Freightways paying?
The present value of a $20,000 perpetuity at a 7 percent discount rate is