Finance Problems

1. How many months it will take to grow your money from $4,074 to $6,702 if you can earn an interest of 8% compounded monthly? Note: Do not write "months" in your answer. Simply write the number in the answer box.

1 points

QUESTION 2

1. How much do you need to invest today in order to have $1,764 at the end of 27 years if you are sure to earn an interest at the rate of 14%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points

QUESTION 3

1. What should you be willing to pay in order to receive $947 annually forever, if you require 6% per year on the investment?

Just enter the number up to 2 decimal points. Do not enter $ in the answer box.

1 points

QUESTION 4

1. If you can triple your money in 9 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box..

1 points

QUESTION 5

1. What is the future value of $535 invested for 13 years at 8% if interest is compounded semi-annually (twice a year)? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points

QUESTION 6

1. Assume interest rate of 8%. A company receives cash flows of $742 at the end of year 5, $243 at the end of year 7, and $676 at the end of year 10. Compute the future value of this cash flow stream.

Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

1 points

QUESTION 7

1. What is the effective rate of 16% compounded monthly?

Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.

1 points

QUESTION 8

1. The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $11,076 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $191,925. At what interest rate would this be a fair deal?Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

1 points

QUESTION 9

1. What is the future value of annual payments of $5,821 for 6 years at 4 percent?

1 points

QUESTION 10

1. How much do you need to invest today in order to have $5,384 at the end of 22 years if you are sure to earn an interest at the rate of 11%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points

QUESTION 11

1. 026:

Say, you deposit $3,279 in a bank for 20 years. What is the amount you will have in the bank at the end of 20 years if interest of 6 % for first 9 years and interest of 10 % for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points

QUESTION 12

1. If you receive $416 at the end of each year for the first three years and $710 at the end of each year for the next three years. What is the present value? Assume interest rate is 10%.

Hint: This is an uneven cash flow problem. Use the CF function and solve for NPV to get the answer.

Just enter the number up to 2 decimal points. Do not enter $ in the answer box.

1 points

QUESTION 13

1. How many years it will take to grow your money from $3,622 to $7,821 if you can earn an interest of 18% compounded quarterly? Note: Do not write "years" in your answer. Simply write the number in the answer box.

1 points

QUESTION 14

1. How many years it will take you to quadruple (means 4 times) your money if you can earn 17.66% each year? Note: Do not write "years" in your answer. Simply write the number in the answer box.

1 points

QUESTION 15

1. If the effective rate is 12%. What is the nominal rate if compounding is daily. Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.

1 points

QUESTION 16

1. What is the future value of $4,007 invested for 20 years at 17% if interest is compounded semi-annually? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points

QUESTION 17

1. Barrett Pharmaceuticals is considering a drug project that costs $198,673 today and is expected to generate end-of-year annual cash flows of $10,454, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project?

Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

1 points

QUESTION 18

1. Assume interest rate of 9%. Suppose that you receive $94,452 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.

Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

1 points

QUESTION 19

1. In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years.

Do not enter the symbol $ in your answer. Enter your answer as a positive number. Simply enter the answer rounded off to two decimal points.

1 points

QUESTION 20

1. Kelly starting setting aside funds 6 years ago to buy some new equipment for her firm. She has saved $607 each quarter and earned an average rate of return of 5 percent. How much money does she currently have saved for this purpose?

1 points

QUESTION 21

1. 027:

Say, you deposit $4,382 in a bank for 16 years. What is the amount you will have in the bank at the end of 16 years if interest of 5 % compounded monthly for first 7 years and interest of 8 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points

QUESTION 22

1. If you can double your money in 13 years, what is the implied annual rate of interest, given that compounded in quarterly? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.

1 points

QUESTION 23

1. How many years it will take to grow your money from $4,569 to $6,111 if you can earn an interest of 8% compounded monthly? Note: Do not write "years" in your answer. Simply write the number in the answer box.

1 points

QUESTION 24

1. What is the future value of $7,256 for 9 years at 3 percent if interest is compounded semi-annually? Note: Do not enter "$" in your answer. Simply write down the number that you get as your answer.