FIN 3403 Principles of Financial Mgmt (Spring 2015) Chapter 6 Quiz (2015)

Review Test Submission: Chapter 6 Quiz

Course Principles of Financial Mgmt [Spring 2015]

Test Chapter 6 Quiz

Started 2/2/15 8:12 PM

• Question 1

1 out of 1 points

You are considering a project which will provide cash inflows of $2,100, $4,000, and $5,500 per year over the next three years, respectively. What is the present value of these cash flows, given a 13 percent discount rate?

• Question 2

1 out of 1 points

You buy an annuity which will pay you $7,800 a year for 15 years. The payments are paid on the first day of each year. What is the value of this annuity today if the discount rate is 12 percent?

• Question 3

1 out of 1 points

You just bought a car costing $33,000 and financed the entire amount for 5 years or60 months at a rate of 6%. What is your monthly payment?

• Question 4

1 out of 1 points

Your credit card company quotes you a rate of 18.9 percent. Interest is billed monthly. What is the actual rate of interest you are paying?

• Question 5

1 out of 1 points

You just won the lottery! As your prize you will receive $1,500 a month for twenty years. If you can earn 9 percent on your money, what is this prize worth to you today?

• Question 6

1 out of 1 points

You have been investing $165 a month for the last 12 years. Today, your investment account is worth $60,508.29. What is your average rate of return on your investments?

• Question 7

1 out of 1 points

What is the interest rate charged per period multiplied by the number of periods per year called?

• Question 8

0 out of 1 points

Your credit card company charges you 1.45 percent per month. What is the annual percentage rate on your account?

• Question 9

1 out of 1 points

An annuity is a(n):

• Question 10

1 out of 1 points

You buy an annuity which will pay you $7,800 a year for 15 years. The payments are paid on the first day of each year. What is the value of this annuity today if the discount rate is 12 percent?