Time Value Of Money FE 3300 Fall 2009
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The value today (t=0) of receiving $5,000 three years from today (t=3) is $_____. Note: Assume an interest rate of 6%.
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$5,788.13
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$4,985.00
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$4,319.19
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$4,198.10
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$5,955.08
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About This Quiz
Time Value of Money
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- 2.
Assume you deposit $200 per year into an account earning 11%. Assume the first deposit is made exactly one year from today (t=1) and the last deposit is made in exactly 7 years (t=7). The account would be worth $_____ 10 years from today (t=10).
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$1,956.65
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$2,675.98
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$1,400.00
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$2,525.48
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$1,897.43
Correct Answer
A. $2,675.98 -
- 3.
Vijai is 23 years old today. He plans to deposit a certain amount into his retirement account today (t = 0) and on each birthday until he turns 65. He plans to withdraw $100,000 per year on each birthday beginning when he is 66 and ending when he is 89. The account will earn 7%. What must the deposits be?
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$6,561.54
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$6,693.26
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$4,549.34
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$4,628.90
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$5,000.00
Correct Answer
A. $4,628.90 -
- 4.
Chris just bought a brand new Corvette for $78,000. He made no down payment and will make monthly payments of $1,524.14 per months for 72 months. The interest rate on the loan is __________%p.a.
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99.84%
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0.99%
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5.99%
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8.54%
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11.98%
Correct Answer
A. 11.98% -
- 5.
Ashleigh bought a house that originally cost $250,000. Her down payment was 20%. It was a 30 year mortgage with a 6% interest rate and monthly payments. What is the remaining balance on her mortgage after 15 years?
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$142,097.68
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$143,892.00
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$167,371.45
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$196,875.34
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$287,784.25
Correct Answer
A. $142,097.68 -
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Apr 20, 2015Quiz Edited by
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