B 3414 (Intermediate Financial Management) Sample TESTAt anytime through the test, weight loss have anything at all other than the test, pencil, eraser, calculator and formulation sheet with your desk. 3. ABSOLUTELY NO QUESTIONS/TALKING DURING ASSESSMENT 4.
Don’t forget to hand in your Formula Sheet. 5. Browse, write your name and sign below., I solemnly declare that I is not going to cheat or perhaps help other folks in cheat in the evaluation SIGNATURE COMPONENT I You will find 15 questions in the initially part, solution all of them. 1 ) The quantity of an endless geometric series ar, ar2, ar3, ar4, ¦¦up to? is a. a(1 ” rn) for ur? 1 one particular ” r b. a(1 ” rn+1) for r? 1 1 , ur c. a for r <, one particular 1″ r d. areal for ur <, you 1 , r electronic. non-e of the above 2 . Consider the following series H = 15 + twelve + ¦¦¦, 10 (1. 06) (1. 06)2 (1. 06)100
The sum with this series is known as a. 10 you ” ( 1/ 1 ) 06)100 1 . 06 b. twelve 1 ” ( 1/ 1 ) 06)100 (1. 06)100 0. 6 (10)100 c. 12 1 ” ( 1/ 1 . 06)100 zero. 06 g. 10 one particular ” ( 1/ 1 . 06)101 0. 06 e. 12 you ” ( 1/ 1 . 06)101 (1. 06) 0. 06 three or more. What is the future value of $10. 30 (deposited 12 months from now) at the end of 20 years, if, perhaps the simple interest rates is zero. 5 percent? (Answer correct inside 2 cents) a. money 11. 28 b. bucks 11. 33 c. dollar 21. 12 d. $1, 091. 80 e. Probably none of the over 4. In how a long time an amount is going to double in case the simple interest rates is 1%? Answer appropriate within 2) a. a decade b. Under no circumstances c. multitude of years d. 100 years at the. 139 years 5. Precisely what is the future value of $ 50 in two decades if the interest levels are doze percent intended for the initial six years, 11 percent for next 5 years and 10 percent for the rest of the period? (Answer correct within one dollar) a. $ 336. 37 b. money 406. twenty three c. $ 392. 13 d. money 413. 91 e. Probably none of the above 6. You are going to receive $160 in the beginning of year fifth 89. What is its present benefit at the beginning of 87 if the interest rate is 13 percent? Solution correct within just 50 cents) a. dollar 141. fifty nine b. bucks 110. fifth there’s 89 c. bucks 125. 30 d. $ 153. 91 e. Probably none of the previously mentioned 7. In how a long time $ 90. 69 can be $ 382. 42 if the rate of interest is 6. on the lookout for percent (Answer correct within just 0. 5) a. 21 years b. 20 years c. 14. six years d. 12-15. 6 years e. non-e of the above almost eight. Suppose you deposit $385. 54 at the beginning of each year to get 10 years.
Locate the future value of these debris at the end of year 14 if the interest is 10 percent compounded annually (Correct within just five dollars) a. $6145 b. $6010 c. $6759 d. $7435 e. Not one of the over 9. You deposited hundred buck three years before in the Initial National Lender. Today the total amount in your consideration is $140. If Initially National Lender offers quarterly compounding, figure out: (Assume 360 days within a year) (1) the twelve-monthly nominal interest rate, (2) the annual effective rate of interest.
Solution in the buy of 1, 2 a. 14, 12 w. 12. six, 13. a couple of c. eleven. 37, 10. 86 m. 11. sixty-eight, 11. 99 e. None of them of the previously mentioned 10. DASAR Corporation wants to earn $200, 000 at the end from the year and projects a rise in revenue of 5% per year. If k can be 10 percent, what is the present value of the revenue if it needs the growth permanently a. $200, 000( zero. 10 , 0. 05)-1 b. $200, 000( zero. 05)-1 c. $4, 000, 000 d. All of the over e. non-e of the above 11. You can expect to deposit money 20 a month beginning of each month commencing today within an account that pays a monthly rate of interest of 8. 21 years old percent. How long will it have for your account to have $980? (Correct within 0. 3) a. 20 months m. 19 months c. 21 months g. 18 months elizabeth. non-e with the above 12. Mr. I. M. Wise started adding $ A in an accounts that paid out 12 percent rate of interest annually. After twenty one annual deposits his accounts had $23864. 20. This current value of the annuity of $A is usually (Correct inside 5 dollars) a. $2474 b. $1193. 21 c. PV with this annuity can not be obtained because the value of $A can be not offered d. $2209 e. Not one of the above 13. Mr. & Mrs. Debt lodged $1000, $2000 and $2000 at the beginning of years 1, 2 and 3.
The interest levels during the years were 0. 12, 0. 15 and 0. twenty. Obtain the present value of such deposits in case the interest is definitely compounded month to month? (Correct within just $ 2) a. $6000 b. $6854 c. $5854 d. $6890 e. non-e of the over 14. If equal withdrawals of 20 dollars at the end of each day while using initial investment of $200 are made, the amount of days needed to exhaust the quantity, if the rate of interest is 10 % per day, will be (assume twelve months in a year) a. The total amount will never be fatigued. 7. 275 c. Cannot be solved as the calculator offers an error communication d. Appears to be the answer will be within almost eight to week e. Not one of the above 15. Mister. John G. L. E. Prabhakara Rao deposited hundred buck in an bank account that pays 20 percent level of interest- compounded month-to-month. He intends to keep the account for two decades. The effective rate of interest his account can be earning is usually (answer right within 0. 02) a. 22. 14 percent m. 20. 06 percent c. 21. 94 percent g. Only a person with this kind of name will keep the account for two decades e. non-e of the over
PART 2 There are two questions with this part, response all of them. 1 . You need to build a college fund at birth for your young one that will shell out $60, 000 at age 18. k=12%. (a) How much should you deposit at the end of each season with gross annual compounding (b) How much must you deposit towards the end of each month with regular monthly compounding (c) What will always be the obligations if they are at the outset of the year (18 payments)? installment payments on your Assume today is April, 4th 2012 and you are about to deposit $100 every January 1st to get five years. Assuming the speed of interest is definitely 12% exponentially boosted monthly, a. What is the modern day value with the deposits today?
