Câu hỏi 1

Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Angela borrowed $5,000 for five years at an APR of 6.2 percent. The loan calls for equal,
annual principal payments. Interest will also be paid annually. What will be her loan payment in
Year 2?

a.
$1,016

b.
$1,310

Year 2 loan payment = $5,000/5 + ($5,000 − 1,000)(.062)

Year 2 loan payment = $1,248

c.
$1,274

d.
$1,157

e.
$1,248
Phản hồi
The correct answer is: $1,248

Câu hỏi 2
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Assume a cash flow of $82,400 in the first year and $148,600 in the second year. Also assume
a present value of $303,764.34 at a discount rate of 12.75 percent. What is the cash flow in the
third year if that is the only other cash flow?

a.
$163,800

$303,764.34 = $82,400/1.1275 + $148,600/1.12752 + C3/1.12753

C3 = $163,100

b.
$164,400

c.
$164,900

d.
$163,100

e.
$163,700
Phản hồi
The correct answer is: $163,100

Câu hỏi 3
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Donaldson's purchased some property for $1.2 million, paid 25 percent down in cash, and
financed the balance for 12 years at 7.2 percent, compounded monthly. What is the amount of
each monthly mortgage payment?

a.
$8,440.01

b.
$9,399.18
c.
$9,513.67

d.
$9,351.66

Amount financed = $1,200,000(1 − .25) = $900,000

$900,000 = C{[1 − 1/(1 + .072/12)12(12)]/(.072/12)}

C = $9,351.66

e.
$8,978.26
Phản hồi
The correct answer is: $9,351.66

Câu hỏi 4
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

The preferred stock of ABC Co. offers a rate of return of 7.87 percent. The stock is currently
priced at $63.53 per share. What is the amount of the annual dividend?

a.
$4.60

b.
$5.00

C = $63.53(.0787)
C = $5.00

c.
$5.50

d.
$5.20
e.
$6.00
Phản hồi
The correct answer is: $5.00

Câu hỏi 5
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Taylor's Hardware offers credit at an APR of 14.9 percent and compounds interest monthly.
What actual rate of interest are they charging?

a.
16.10 percent

b.
15.96 percent

EAR = (1 + .149/12)12− 1
EAR = .1596, or 15.96%

c.
14.90 percent

d.
13.97 percent

e.
15.48 percent
Phản hồi
The correct answer is: 15.96 percent

Câu hỏi 6
Sai
Đạt điểm 0,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
Lucas invested $4,500 at 6.2 percent, compounded continuously. What will his investment be
worth after 15 years?

a.
$12,308.84

FV = $4,500e.062(15)
FV = $11,405.29

b.
$9,240.03

c.
$11,405.29

d.
$15,557.78

e.
$8,685.00
Phản hồi
The correct answer is: $11,405.29

Câu hỏi 7
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
You would be making a wise decision if you chose to:

a.
assume all loans and investments are based on simple interest.
b.
accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage
rate.

Đúng

c.
ignore the effective rates and concentrate on the annual percentage rates for all transactions.

d.
base decisions regarding investments on effective rates and base decisions regarding loans on annual
percentage rates.

e.
invest in an account paying 6 percent, compounded quarterly, rather than an account paying 6 percent,
compounded monthly.
Phản hồi
The correct answer is: accept the loan with the lower effective annual rate rather than the loan with the
lower annual percentage rate.

Câu hỏi 8
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Marcos will receive an annuity payment of $2,500, payable every two years, for the next ten
years. The next payment is due two years from today. What is the present value of this annuity
at a discount rate of 5 percent?

a.
$10,466.67

b.
$8,949.60

2-year interest rate = 1.052− 1

2-year interest rate = .1025, or 10.25%
PV = $2,500[(1 − 1/1.102510/2)/.1025]
PV = $9,416.75

c.
$10,052.48

d.
$9,416.75

e.
$11,221.08
Phản hồi
The correct answer is: $9,416.75

Câu hỏi 9
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

An annuity costs $70,000 today, pays $3,500 a year, and earns a return of 4.5 percent. What is
the length of the annuity time period?

a.
48.00 years

b.
54.96 years

$70,000 = $3,500[(1 − 1/1.045T)/.045]

10 = 1.045T
ln10 = Tln1.045
T = 52.31 years

c.
49.48 years

d.
43.08 years
e.
52.31 years
Phản hồi
The correct answer is: 52.31 years

Câu hỏi 10
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Several years ago, Sara invested $4,208. Today, that investment is worth $28,406 and has
earned an average annual rate of return of 7.38 percent. How long ago did Sara make her
investment?

a.
18.98 years

$28,406 = $4,208(1.0738)T
T = 26.82 years

b.
14.97 years

c.
23.03 years

d.
31.09 years

e.
26.82 years
Phản hồi
The correct answer is: 26.82 years

Câu hỏi 11
Đúng
Đạt điểm 1,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
The net present value of a project is equal to the:

a.
present value of the future cash flows minus the initial cost.

Đúng

b.
future value of the future cash flows minus the initial cost.

c.
sum of the project's anticipated cash inflows.

d.
future value of the future cash flows minus the present value of the initial cost.

e.
present value of the future cash flows.
Phản hồi
The correct answer is: present value of the future cash flows minus the initial cost.

Câu hỏi 12
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

The highest effective annual rate that can be derived from an annual percentage rate of 9
percent is computed as:

a.
e.09q.
b.
(1 + .09/365)(365).

c.
e.09− 1.

d.
1.09e.

e.
(1 + .09/365)365− 1.

Sai
Phản hồi
The correct answer is: e.09− 1.

Câu hỏi 13
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

A perpetuity differs from an annuity because:

a.
perpetuity cash flows never cease.

Đúng

b.
perpetuity cash flows vary with the market rate of interest.

c.
annuity cash flows occur at irregular intervals of time.

d.
perpetuity cash flows vary with the rate of inflation.
e.
perpetuity cash flows are variable while annuity payments are constant.
Phản hồi
The correct answer is: perpetuity cash flows never cease.

Câu hỏi 14
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Anna's grandmother established a trust and deposited $250,000 into it. The trust pays a
guaranteed 4.25 percent rate of return. Anna will receive all the interest earnings on an annual
basis and a charity will receive the principal amount at Anna's passing. How much income will
Anna receive each year?

a.
$12,750

b.
$10,000

c.
$12,400

d.
$10,625

C = $250,000(.0425)
C = $10,625

e.
$8,500
Phản hồi
The correct answer is: $10,625

Câu hỏi 15
Sai
Đạt điểm 0,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
You want to purchase an annuity that will pay you $1,200 a quarter for 15 years and earn a
return of 5.5 percent, compounded quarterly. What is the most you should pay to purchase this
annuity?

a.
$48,450.67

b.
$52,806.30

APV = $1,200{[1 − 1/(1 + .055/4)15(4)]/(.055/4)}

APV = $48,811.20

c.
$47,455.33

d.
$52,988.16

e.
$48,811.20
Phản hồi
The correct answer is: $48,811.20

Câu hỏi 16
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Assume you borrow $6,600 for three years. How much will you still owe after the three years if
you pay all of the payments as set forth in the loan's amortization schedule?
a.
$2,200

b.
$2,650

c.
$3,150

d.
$0

Đúng

e.
$6,500
Phản hồi
The correct answer is: $0

Câu hỏi 17
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You would like to have $50,000 saved at the end of Year 5. At the end of Year 2, you can
deposit $7,500 for this purpose. If you earn 4.5 percent, how much must you deposit today to
reach your goal assuming no other deposits are made?

a.
$34,276.34

$50,000 = C01.0455 + $7,500(1.0453)

C0 = $33,254.58

b.
$33,254.58
c.
$34,642.28

d.
$33,108.09

e.
$34,912.63
Phản hồi
The correct answer is: $33,254.58

Câu hỏi 18
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
The Smart Bank wants to be competitive based on quoted loan rates and thus must offer loans
at an annual percentage rate of 7.9 percent. What is the maximum rate the bank can actually
earn based on this quoted rate?

a.
8.22 percent

b.
8.39 percent

EAR = e.079− 1
EAR = .0822, or 8.22%

c.
8.18 percent

d.
8.20 percent

e.
7.90 percent
Phản hồi
The correct answer is: 8.22 percent

Câu hỏi 19
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Tracie will receive payments of $550 a month for ten years. What are these payments worth
today at a discount rate of 6 percent, compounded monthly?

a.
$53,737.08

b.
$49,540.40

c.
$51,523.74

APV = $550{[1 − 1/(1 + .06/12)10(12)]/(.06/12)}

APV = $49,540.40

d.
$48,808.17

e.
$49,757.69
Phản hồi
The correct answer is: $49,540.40

Câu hỏi 20
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Starting today, Alicia is going to contribute $100 a month to her retirement account. Her
employer matches her contribution by 50 percent. If these contributions remain constant, and
she earns a monthly rate of .55 percent, how much will her savings be worth 40 years from
now?

a.
$399,459.44

AFVADue = ($100 + 50)[(1.005540(12)− 1)/.0055](1.0055)

AFVADue = $354,087.88

b.
$354,087.88

c.
$349,981.21

d.
$300,456.74

e.
$299,189.16
Phản hồi
The correct answer is: $354,087.88

Câu hỏi 21
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

What rate of return should be used to compute the NPV of a proposed purchase of Smiley's, an
operating business?

a.
The rate of interest charged by a bank for a loan similar in size to the cost of the purchase

b.
A discount rate equal to Smiley's net profit percentage
c.
A discount rate equal to Smiley's current return on equity

d.
A discount rate that makes the NPV of the proposed purchase positive

e.
The discount rate applicable to other investments with similar risks

Đúng
Phản hồi
The correct answer is: The discount rate applicable to other investments with similar risks

Câu hỏi 22
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You are comparing two investment options, each of which will provide $15,000 of total income.
Option A pays five annual payments starting with $5,000 the first year followed by four annual
payments of $2,500 each. Option B pays five annual payments of $3,000 each. Which one of
the following statements is correct given these two investment options?

a.
Option A is preferable because it is an annuity due.

b.
Option B has a higher present value than Option A given a positive rate of return.

c.
Given a positive rate of return, Option A is worth more today than Option B.

Đúng

d.
Option B has a lower present value than Option A given a zero rate of return.
e.
Both options are of equal value today.
Phản hồi
The correct answer is: Given a positive rate of return, Option A is worth more today than Option B.

Câu hỏi 23
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Assume mortgage rates increase to 7.5 percent and you borrow $329,000 for 30 years to
purchase a house. What will your loan balance be at the end of the first 15 years of monthly
payments?

a.
$207,308.09

$329,000 = C{[1 − 1/(1 + .075/12)30(12)]/(.075/12)}

C = $2,300.42

PV = $2,300.42{[1 − 1/(1 + .075/12)(30 − 15)(12)]/(.075/12)}

PV = $248,153.73

b.
$248,153.73

c.
$192,938.72

d.
$238,854.07

e.
$194,311.64
Phản hồi
The correct answer is: $248,153.73

Câu hỏi 24
Đúng
Đạt điểm 1,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
What effect will an increase in the discount rate have on the present value of a project that has
an initial cash outflow followed by five years of cash inflows?

a.
The PV will increase.

b.
The PV will decrease.

Đúng

c.
There will be no effect on the PV.

d.
The PV will remain the same as the timing of the cash flows must change also.

e.
The PV will change but the direction of the change is unknown.
Phản hồi
The correct answer is: The PV will decrease.

Câu hỏi 25
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
You borrow $199,000 to buy a house. The mortgage rate is 5.5 percent, compounded monthly.
The loan period is 30 years, and payments are made monthly. If you pay for the house
according to the loan agreement, how much total interest will you pay?
a.
$198,161

b.
$185,059

c.
$218,086

d.
$207,764

e.
$211,086

$199,000 = C{[1 − 1/(1 + .055/12)30(12)]/(.055/12)}

C = $1,129.90

Total interest = 30(12)($1,129.90) − $199,000

Total interest = $207,764
Phản hồi
The correct answer is: $207,764

Câu hỏi 26
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

For a proposed purchase to be acceptable, the PV of the future cash flows must:

a.
be positive at the relevant discount rate.

b.
equal or exceed the cost of the purchase.

Đúng
c.
be less than the cost of the purchase.

d.
be positive at all discount rates.

e.
equal the purchase price.
Phản hồi
The correct answer is: equal or exceed the cost of the purchase.

Câu hỏi 27
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Assume your employer will contribute $50 a week for twenty years to your retirement plan. At a
discount rate of 5 percent, compounded weekly, what is this employee benefit worth to you
today?

a.
$32,861.08

APV = $50{[1 − 1/(1 + .05/52)20(52)]/(.05/52)}

APV = $32,861.08

b.
$29,144.43

c.
$26,446.34

d.
$36,519.02

e.
$35,920.55
Phản hồi
The correct answer is: $32,861.08

Câu hỏi 28
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Fred purchased a city lot for $39,900. That lot has appreciated at 6.5 percent annually and is
now valued at $287,400. How long has Fred owned this lot?

a.
31.35 years

b.
37.97 years

c.
33.09 years

d.
26.87 years

$287,400 = $39,900(1.065)T
T = 31.35 years

e.
29.11 years
Phản hồi
The correct answer is: 31.35 years

Câu hỏi 29
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
A preferred stock pays an annual dividend of $6.50 a share and has an annual rate of return of
7.35 percent. What is the stock price?

a.
$92.09

b.
$71.78

c.
$77.78

d.
$88.44

PV = $6.50/.0735
PV = $88.44

e.
$74.50
Phản hồi
The correct answer is: $88.44

Câu hỏi 30
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Assume you graduate with $31,300 in student loans at an interest rate of 5.25 percent,
compounded monthly. If you want to have this debt paid in full within three years, how much
must you pay each month?

a.
$876.79

b.
$873.65
$31,300 = C{[1 − 1/(1 + .0525/12)3(12)]/(.0525/12)}
C = $941.61

c.
$980.40

d.
$871.30

e.
$941.61
Phản hồi
The correct answer is: $941.61

Câu hỏi 31
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Olivia is willing to pay $185 a month for four years for a car payment. If the interest rate is 4.9
percent, compounded monthly, and she has a cash down payment of $2,500, what price car
can she afford to purchase?

a.
$8,686.82

b.
$10,961.36

PV = $2,500 + $185{[1 − 1/(1 + .049/12)4(12)]/(.049/12)}

PV = $10,549.07

c.
$8,533.84

d.
$10,549.07

e.
$8,342.05
Phản hồi
The correct answer is: $10,549.07

Câu hỏi 32
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
A small craft store located in a kiosk expects to generate annual cash flows of $6,800 for the
next three years. At the end of the three years, the business is expected to be sold for $15,000.
What is the value of this business at a discount rate of 15 percent?

a.
$17,409.09

b.
$25,388.67

PV = [$6,800[(1 − 1/1.153)/.15] + $15,000/1.153

PV = $25,388.67

c.
$19,477.67

d.
$30,100.07

e.
$29,408.27
Phản hồi
The correct answer is: $25,388.67

Câu hỏi 33
Sai
Đạt điểm 0,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
You need some money today and the only friend you have that has any is your ‘miserly' friend.
He agrees to loan you the money you need, if you make payments of $20 a month for the next
six months. In keeping with his reputation, he requires that the first payment be paid today. He
also charges you 1.5 percent interest per month. How much total interest does he expect to
earn?

a.
$4.35

b.
$1.34

c.
$3.94

d.
$5.96

e.
$3.63

APVADue = $20[(1 − 1/1.0156)/.015](1.015)

APVADue = $115.65

Total interest = 6($20) − $115.65

Total interest = $4.35
Phản hồi
The correct answer is: $4.35

Câu hỏi 34
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

If you invest $2,500 today, an investment guarantees you will have $3,600 four years from
today. What rate of interest will you earn?

a.
9.03 percent

b.
9.39 percent

$3,600 = $2,500(1 + r)4

r = .0954, or 9.54%

c.
8.72 percent

d.
9.54 percent

e.
8.68 percent
Phản hồi
The correct answer is: 9.54 percent

Câu hỏi 35
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You plan to save $2,400 a year and earn an average rate of interest of 5.6 percent. How much
more will your savings be worth at the end of 40 years if you save at the beginning of each year
rather than at the end of each year?

a.
$18,115.31

AFV = $2,400[(1.05640− 1)/.056]

AFV = $336,091.14
AFVADue = $2,400[(1.05640− 1)/.056](1.056)
AFVADue = $354,912.24

Difference = $354,912.24 − 336,091.14

Difference = $18,821.10

This can also be computed as:

Difference = $336,091.14(.056)
Difference = $18,821.10

b.
$19,103.04

c.
$18,911.21

d.
$18,821.10

e.
$17,822.73
Phản hồi
The correct answer is: $18,821.10

Câu hỏi 36
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
You are retired, have $264,500 in your savings, withdraw $2,000 each month, and earn 4.5
percent, compounded monthly. How long will it be until you run out of money?

a.
13.02 years

b.
22.08 years

c.
15.25 years

d.
13.67 years

$264,500 = $2,000{[1 − 1/(1 + .045/12)T]/(.045/12)}

ln1.9839 = Tln1.00375
T = 183.02 months, or 15.25 years

e.
18.78 years
Phản hồi
The correct answer is: 15.25 years

Câu hỏi 37
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

A growing perpetuity is currently valued $6,225.81. The next annuity payment will be $386 and
the discount rate is 9 percent. What is the annuity's rate of growth?

a.
2.45 percent

b.
3.10 percent

c.
2.80 percent

d.
2.50 percent

$6,225.81 = $386/(.09 −g)

g = .028, or 2.80%

e.
2.95 percent
Phản hồi
The correct answer is: 2.80 percent

Câu hỏi 38
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Thirty-five years ago, your father invested $2,000. Today that investment is worth $98,407.
What annual rate of return has been earned on this investment?

a.
11.33 percent

b.
9.99 percent

c.
10.50 percent

d.
11.77 percent

e.
10.94 percent

$98,407 = $2,000(1 + r)35

r = .1177, or 11.77%
Phản hồi
The correct answer is: 11.77 percent

Câu hỏi 39
Sai
Đạt điểm 0,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
Leo received $7,500 today and will receive another $5,000 two years from today. If he invests
these funds immediately at 11.5 percent, what will his investments be worth five years from
now?

a.
$19,904.36

FV = $7,500(1.1155) + $5,000(1.1153)
FV = $19,856.13

b.
$18,806.39

c.
$19,856.13

d.
$20,314.00

e.
$18,758.04
Phản hồi
The correct answer is: $19,856.13

Câu hỏi 40
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You are considering two projects. Project A has projected cash flows of $6,500, $4,500, and
$2,500 for the next three years, respectively. Project B has projected cash flows of $2,500,
$4,500, and $6,500 for the next three years, respectively. Assuming both projects have the
same initial cost, you know that:

a.
Project B has a higher net present value than Project A.

b.
Project A is more valuable than Project B given a positive discount rate.

Đúng

c.
there are no conditions under which the projects can have equal values.

d.
both projects offer the same rate of return.

e.
both projects have equal net present values at any discount rate.
Phản hồi
The correct answer is: Project A is more valuable than Project B given a positive discount rate.

Câu hỏi 41
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

What is the future value of $3,100 a year for six years at interest rate of 8.9 percent?

a.
$24,414.67

b.
$26,847.26

AFV = $3,100[(1.0896− 1)/.089]

AFV = $23,263.57
c.
$23,263.57

d.
$20,255.40

e.
$27,134.16
Phản hồi
The correct answer is: $23,263.57

Câu hỏi 42
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Nu-Tools plans to set aside an equal amount of money each year, starting today, so that it will
have $25,000 saved at the end of three years. If the firm can earn 4.7 percent, how much does
it have to save annually?

a.
$8,414.14

b.
$8,333.33

c.
$8,004.67

$25,000 = C[(1.0473− 1)/.047](1.047)

C = $7,596.61

d.
$7,689.16

e.
$7,596.61
Phản hồi
The correct answer is: $7,596.61

Câu hỏi 43
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You want to establish a trust fund that will provide $50,000 a year forever for your heirs. If the
fund can earn a guaranteed rate of return of 4.5 percent, how much must you deposit in a
solitary lump sum to establish this trust?

a.
$1,250,000

PV = $50,000/.045
PV = $1,111,111

b.
$2,250,000

c.
$1,333,333

d.
$1,111,111

e.
$1,666,667
Phản hồi
The correct answer is: $1,111,111

Câu hỏi 44
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Ted purchased an annuity today that will pay $1,000 a month for five years. He received his first
monthly payment today. Allison purchased an annuity today that will pay $1,000 a month for five
years. She will receive her first payment one month from today. Which one of the following
statements is correct concerning these two annuities?

a.
Both annuities are of equal value today.

b.
Ted's annuity has a higher present value than Allison's.

Đúng

c.
Ted's annuity is an ordinary annuity.

d.
Allison's annuity has a higher present value than Ted's.

e.
Allison's annuity is an annuity due.
Phản hồi
The correct answer is: Ted's annuity has a higher present value than Allison's.

Câu hỏi 45
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
A project is expected to produce cash flows of $48,000, $39,000, and $15,000 over the next
three years, respectively. After three years, the project will be worthless. What is the net present
value of this project if the applicable discount rate is 15.25 percent and the initial cost is
$78,500?

a.
$2,309.09
b.
$1,808.17

c.
−$1,201.76

NPV = −$78,500 + $48,000/1.1525 + $39,000/1.1525 2 + $15,000/1.15253

NPV = $2,309.09

d.
$3,132.48

e.
−$3,457.96
Phản hồi
The correct answer is: $2,309.09

Câu hỏi 46
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Sara is the recipient of a trust that will pay her $500 on the first day of each month, starting
immediately and continuing for 40 years. What is the value of this inheritance today if the
applicable discount rate is 7.3 percent, compounded monthly?

a.
$78,192.28

b.
$67,557.52

c.
$80,006.09

d.
$76,811.30

e.
$89,204.04

APVADue = $500{[1 − 1/(1 + .073/12)40(12)]/(.073/12)}(1 + .073/12)

APVADue = $78,192.28
Phản hồi
The correct answer is: $78,192.28

Câu hỏi 47
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Your parents plan to give you $200 a month for four years while you are in college. At a
discount rate of 6 percent, compounded monthly, what are these payments worth to you when
you first start college?

a.
$8,279.32

APV = $200{[1 − 1/(1 + .06/12)4(12)]/(.06/12)}

APV = $8,516.06

b.
$8,409.56

c.
$8,797.40

d.
$8,198.79

e.
$8,516.06
Phản hồi
The correct answer is: $8,516.06

Câu hỏi 48
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You are comparing two annuities with equal present values. The applicable discount rate is 6.5
percent. One annuity will pay $2,000 annually, starting today, for 20 years. The second annuity
will pay annually, starting one year from today, for 20 years. What is the annual payment for the
second annuity?

a.
$2,225

b.
$2,075

c.
$2,130

APVADue = $2,000[(1 − 1/1.06520)/.065](1.065)

APVADue = $23,469.42

$23,469.42 = C[(1 − 1/1.06520)/.065]

C = $2,130

This can also be computed as:

C = $2,000(1.065) = $2,130

d.
$2,000

e.
$2,405
Phản hồi
The correct answer is: $2,130

Câu hỏi 49
Đúng
Đạt điểm 1,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
Martha left an inheritance to her grandson that will pay him $1,500 on the first day of every other
year. When computing the PV of this inheritance, the grandson should use:

a.
an effective annual rate.

b.
a semiannual discount rate.

c.
a 2-year discount rate.

Đúng

d.
a semiannually compounded discount rate.

e.
simple interest.
Phản hồi
The correct answer is: a 2-year discount rate.

Câu hỏi 50
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
You just paid $525,000 for a security that will pay you and your heirs $25,000 a year forever.
What rate of return will you earn?

a.
4.76 percent

r = $25,000/$525,000
r = .0476, or 4.76%

b.
4.39 percent

c.
4.50 percent

d.
4.95 percent

e.
5.00 percent
Phản hồi
The correct answer is: 4.76 percent

Câu hỏi 51
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Stu can purchase a house today for $110,000, including the cost of some minor repairs. He
expects to be able to resell it in one year for $129,000 after cleaning up the property. At a
discount rate of 5.5 percent, what is the expected net present value of this purchase
opportunity?

a.
$12,487.43

NPV = −$110,000 + $129,000/1.055

NPV = $12,274.88

b.
$11,311.02
c.
$9,208.18

d.
$13,001.61

e.
$12,274.88
Phản hồi
The correct answer is: $12,274.88

Câu hỏi 52
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
What is the future value of investing $5,650 for 14 years at a continuously compounded rate of
8.6 percent?

a.
$18,833.85

b.
$16,685.44

c.
$17,933.54

d.
$19,369.83

FV = $5,650e.086(14)
FV = $18,833.85

e.
$13,183.85
Phản hồi
The correct answer is: $18,833.85
Câu hỏi 53
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Eleven years ago, a guitar cost $1,800. Today, that same guitar costs $3,650. What has been
the inflation rate on this instrument?

a.
6.49 percent

b.
6.81 percent

c.
6.64 percent

$3,650 = $1,800(1 + r)11

R = .0664, or 6.64%

d.
6.57 percent

e.
6.32 percent
Phản hồi
The correct answer is: 6.64 percent

Câu hỏi 54
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
A trust has been established to fund scholarships in perpetuity. The next annual distribution will
be $1,200 and future payments will increase by 3 percent per year. What is the value of this
trust at a discount rate of 7.4 percent?

a.
$19,960.00

b.
$30,388.18

PV = $1,200/(.074 − .03)
PV = $27,272.73

c.
$27,272.73

d.
$24,609.11

e.
$17,189.19
Phản hồi
The correct answer is: $27,272.73

Câu hỏi 55
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Seven years ago, Carlos took out a mortgage for $185,000 at 5.6 percent, compounded
monthly, for 30 years. He has made all of the monthly payments as agreed. What is his current
loan balance?

a.
$ 157,308.74

b.
$164,621.06
c.
$141,833.33

d.
$148,211.09

$185,000 = C{[1 − 1/(1 + .056/12)30(12)]/(.056/12)}

C = $1,062.05

PV = $1,062.05{[1 − 1/(1 + .056/12)(30 − 7)(12)]/(.056/12)}

PV = $164,621.06

e.
$142,779.47
Phản hồi
The correct answer is: $164,621.06

Câu hỏi 56
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
You are considering a project with projected annual cash flows of $32,200, $41,800, and
$22,900 for the next three years, respectively. What is the present value of these cash flows at
a discount rate of 14 percent?

a.
$75,866.20

PV = $32,200/1.14 + $41,800/1.142 + $22,900/1.143

PV = $75,866.20

b.
$77,103.18

c.
$81,292.25

d.
$86,487.47

e.
$66,549.30
Phản hồi
The correct answer is: $75,866.20

Câu hỏi 57
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Assume an annuity will pay $1,000 a year for five years with the first payment occurring in Year
4, that is, four years from today. When you compute the present value of that annuity using the
PV formula, the PV will be as of which point in time?

a.
Year 1

b.
Year 4

Sai

c.
Year 2

d.
Year 3

e.
Today, Year 0
Phản hồi
The correct answer is: Year 3

Câu hỏi 58
Sai
Đạt điểm 0,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
You want to have $20,000 saved in five years. If you can earn 4.5 percent on your savings,
what amount must you save each year if the amount you save each year is the same?

a.
$3,775.04

b.
$4,038.01

$20,000 = C[(1.0455− 1)/.045]

C = $3,655.83

c.
$3,801.03

d.
$3,655.83

e.
$3,798.34
Phản hồi
The correct answer is: $3,655.83

Câu hỏi 59
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
What is the future value of $845 a year for seven years at an interest rate of 11.3 percent?

a.
$8,001.38
AFV = $845[(1.1137− 1)/.113]
AFV = $8,343.51

b.
$6,683.95

c.
$6,075.69

d.
$8,801.91

e.
$8,343.51
Phản hồi
The correct answer is: $8,343.51

Câu hỏi 60
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Shawn has $2,500 invested at a guaranteed rate of 4.35 percent, compounded annually. What
will his investment be worth after five years?

a.
$3,288.00

b.
$3,321.32

FV5 = $2,500(1.04355)
FV5 = $3,093.16

c.
$2,997.04
d.
$3,093.16

e.
$2,857.59
Phản hồi
The correct answer is: $3,093.16

Câu hỏi 61
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Given a stated interest rate, which form of compounding will yield the highest effective rate of
interest?

a.
Daily compounding

b.
Annual compounding

c.
Semiannual compounding

d.
Continuous compounding

Đúng

e.
Monthly compounding
Phản hồi
The correct answer is: Continuous compounding

Câu hỏi 62
Sai
Đạt điểm 0,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
Your credit card company charges you 1.35 percent per month. What is the annual percentage
rate on your account?

a.
16.30 percent

b.
16.39 percent

APR = .0135(12)
APR = .1620, or 16.20%

c.
16.45 percent

d.
16.56 percent

e.
16.20 percent
Phản hồi
The correct answer is: 16.20 percent

Câu hỏi 63
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Jenni's Diner has expected net annual cash flows of $16,200, $18,600, $19,100, and $19,500
for the next four years, respectively. At the end of the fourth year, the diner is expected to be
worth $57,900 cash. What is the present value of the diner at a discount rate of 11.6 percent?
a.
$104,998.02

b.
$101,016.38

PV = $16,200/1.116 + $18,600/1.1162 + $19,100/1.1163 + ($19,500 + 57,900)/1.1164

PV = $93,090.25

c.
$93,090.25

d.
$87,492.16

e.
$98,411.20
Phản hồi
The correct answer is: $93,090.25

Câu hỏi 64
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Over the next three years, Marti plans to save $2,000, $2,500, and $3,000, respectively, starting
one year from today. You want to have as much money as Marti does three years from now but
you plan to make one lump sum investment today. What amount must you save today if you
both earn 4.65 annually?

a.
$6,811.50

PV = $2,000/1.0465 + $2,500/1.04652 + $3,000/1.04653

PV = $6,811.50

b.
$7,500.00

c.
$6,607.23

d.
$6,791.42

e.
$7,128.23
Phản hồi
The correct answer is: $6,811.50

Câu hỏi 65
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity
payment made on the date of purchase. What is the value of the annuity on the purchase date
given a discount rate of 7 percent?

a.
$52,970.07

b.
$56,191.91

c.
$66,916.21

APVADue = $5,000[(1 − 1/1.0720)/.07](1.07)

APVADue = $56,677.98

d.
$54,282.98

e.
$56,677.98
Phản hồi
The correct answer is: $56,677.98

Câu hỏi 66
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Beatrice invests $1,000 in an account that pays 5 percent simple interest. How much more
could she have earned over a period of 10 years if the interest had compounded annually?

a.
$135.97

FVSimple = $1,000 + $1,000(.05)(10)

FVSimple = $1,500

FV = $1,000(1.0510)
FV = $1,628.89

Difference = $1,628.89 − 1,500

Difference = $128.89

b.
$128.89

c.
$132.45

d.
$117.09

e.
$121.67
Phản hồi
The correct answer is: $128.89

Câu hỏi 67
Sai
Đạt điểm 0,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
The pawn shop adds 2 percent to loan balances for every two weeks a loan is outstanding.
What is the effective annual rate of interest?

a.
79.97 percent

EAR = 1.0252/2− 1
EAR = .6734, or 67.34%

b.
51.21 percent

c.
73.08 percent

d.
67.34 percent

e.
83.43 percent
Phản hồi
The correct answer is: 67.34 percent

Câu hỏi 68
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
You borrow $12,600 to buy a car. The terms of the loan call for monthly payments for five years
at an interest rate of 4.65 percent, compounded monthly. What is the amount of each payment?
a.
$243.73

b.
$230.62

c.
$235.76

d.
$253.22

e.
$233.04

$12,600 = C{[1 − 1/(1 + .0465/12)5(12)]/(.0465/12)}

C = $235.76
Phản hồi
The correct answer is: $235.76

Câu hỏi 69
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

A flow of unending annual payments that increase by a set percentage each year and occur at

regular intervals of time is called a :

a.
variable perpetuity.

b.
variable annuity.

c.
annuity due.

d.
growing annuity.

e.
growing perpetuity.

Đúng
Phản hồi
The correct answer is: growing perpetuity.

Câu hỏi 70
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000
today. A final deposit of $3,500 will be made one year from now. What will the account balance
be three years from now if the account pays 4.85 percent interest, compounded annually?

a.
$14,328.90

FV3 = $3,200(1.04855) + $5,000(1.04853) + $3,500(1.04852)

FV3 = $13,666.10

b.
$13,666.10

c.
$13,430.84

d.
$12,431.05

e.
$13,033.95
Phản hồi
The correct answer is: $13,666.10
Câu hỏi 71
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Wilt has a consulting contract that calls for annual payments of $50,000 a year for five years
with the first payment due today. What is the current value of this contract if the discount rate is
8.4 percent?

a.
$195,618.19

b.
$214,142.50

c.
$224,267.10

d.
$201,867.47

APVADue = $50,000[(1 − 1/1.0845)/.084](1.084)

APVADue = $214,142.50

e.
$197,548.43
Phản hồi
The correct answer is: $214,142.50

Câu hỏi 72
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Annuities where the payments occur at the end of each time period are called _____, whereas
_____ refer to annuity streams with payments occurring at the beginning of each time period.

a.
straight annuities; late annuities

b.
annuities due; ordinary annuities

c.
ordinary annuities; annuities due

Đúng

d.
late annuities; straight annuities

e.
ordinary annuities; early annuities
Phản hồi
The correct answer is: ordinary annuities; annuities due

Câu hỏi 73
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

An insurance settlement offer includes annual payments of $36,000, $42,000, and $50,000 over
the next three years, respectively, with the first payment being made one year from today. What
is the minimum amount you should accept today as a lump sum settlement if your discount rate
is 7 percent?

a.
$111,144.18

b.
$118,924.27
c.
$119,877.67

d.
$114,556.88

PV = $36,000/1.07 + $42,000/1.072 + $50,000/1.073

PV = $111,144.18

e.
$105,000.10
Phản hồi
The correct answer is: $111,144.18

Câu hỏi 74
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You are buying a car for $7,500, paying $900 down in cash, and financing the balance for 24
months at 6.5 percent, compounded monthly. What is the amount of each monthly loan
payment?

a.
$318.64

b.
$264.78

c.
$294.01

Amount financed = $7,500 − 900 = $6,600

$6,600 = C{[1 − 1/(1 + .065/12)24]/(.065/12)}

C = $294.01

d.
$302.02
e.
$245.09
Phản hồi
The correct answer is: $294.01

Câu hỏi 75
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

What is the effective annual rate of 10.25 percent compounded continuously?

a.
10.86 percent

EAR = e.1025− 1
EAR = .1079, or 10.79%

b.
10.79 percent

c.
10.98 percent

d.
11.11 percent

e.
11.04 percent
Phản hồi
The correct answer is: 10.79 percent

Câu hỏi 76
Đúng
Đạt điểm 1,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
What is the annual percentage rate on a loan that charges interest of 1.65 percent per quarter?

a.
6.45 percent

b.
6.60 percent

APR = .0165(4)
APR = .0660, or 6.60%

c.
6.72 percent

d.
6.54 percent

e.
6.50 percent
Phản hồi
The correct answer is: 6.60 percent

Câu hỏi 77
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

An interest rate that is compounded monthly, but is expressed as if the rate were compounded
annually, is called the _____ rate.

a.
daily interest
b.
stated interest

c.
periodic interest

d.
effective annual

Đúng

e.
compound interest
Phản hồi
The correct answer is: effective annual

Câu hỏi 78
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Denise will receive annual payments of $10,000 for the next 25 years. The discount rate is 6.8
percent. What is the difference in the present value of these payments if they are paid at the
beginning of each year rather than at the end of each year?

a.
$8,382.04

APVADue = $10,000[(1 - 1/1.06825)/.068](1.068)

APVADue = $126,735.21

APV = $10,000[(1 − 1/1.06825)/.068]

APV = $118,665.92

Difference = $126,735.21 − 118,665.92

Difference = $8,069.29

b.
$9,706.67

c.
$8,069.29

d.
$8,850.00

e.
$9,216.67
Phản hồi
The correct answer is: $8,069.29

Câu hỏi 79
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Benson's established a trust fund that provides $125,000 in college scholarships each year. The
trust fund earns 6.15 percent and distributes only its annual income. How much money did
Benson's contribute to establish this fund?

a.
$2,032,520

PV = $125,000/.0615
PV = $2,032,520

b.
$1,987,408

c.
$2,018,970

d.
$2,291,613

e.
$2,150,000
Phản hồi
The correct answer is: $2,032,520

Câu hỏi 80
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

On the day she retired, Kate had $101,900 in retirement savings. She expects to earn 4.5
percent, compounded monthly, and live 24 more years. How much can she withdraw from her
savings each month during her retirement if she plans to die on the day she spends her last
penny?

a.
$609.21

b.
$604.86

c.
$592.07

$101,900 = C{[1 − 1/(1 + .045/12)24(12)]/(.045/12)}

C = $579.22

d.
$579.22

e.
$539.87
Phản hồi
The correct answer is: $579.22

Câu hỏi 81
Đúng
Đạt điểm 1,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
Christina will receive annuity payments of $1,200 a year for five years, with the first payment
occurring at Year 4. What is the value of this annuity to her today at a discount rate of 7.25
percent?

a.
$4,887.48

b.
$4,111.08

c.
$4,774.04

d.
$3,961.80

APV3 = $1,200[(1 − 1/1.07255)/.0725]

APV3 = $4,887.48

PV0 = $4,887.48/1.07253
PV0 = $3,961.80

e.
$4,209.19
Phản hồi
The correct answer is: $3,961.80

Câu hỏi 82
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Binder and Sons borrowed $138,000 for three years from their local bank and now they are
paying monthly payments that include both principal and interest. Paying off debt by making
instalment payments, such as this firm is doing, is referred to as:

a.
foreclosing on the debt.

b.
funding the debt.

c.
calling the debt.

d.
refunding the debt.

e.
amortizing the debt.

Đúng
Phản hồi
The correct answer is: amortizing the debt.

Câu hỏi 83
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
You want to save an equal amount each year for the next 38 years, at which time you will retire.
What amount of annual savings are needed if you desire a retirement income of $55,000 a year
for 25 years and earn 7.5 percent, compounded annually?

a.
$3,406.16

PV = $55,000[(1 − 1/1.07525)/.075]
PV = $613,082.02
$613,082.02 = C[(1.07538− 1)/.075]
C = $3,146.32

b.
$2,640.85

c.
$2,889.04

d.
$3,333.33

e.
$3,146.32
Phản hồi
The correct answer is: $3,146.32

Câu hỏi 84
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

A car dealer is willing to lease you a car for $319 a month for 60 months. Payments are due on
the first day of each month starting with the day you sign the lease contract. If your cost of
money is 4.9 percent, compounded monthly, what is the current value of the lease?

a.
$17,014.34

b.
$17,906.14

APVADue = {$319{[1 − 1/(1 + .049/12)60]/(.049/12)}(1 + .049/12)

APVADue = $17,014.34

c.
$17,882.75

d.
$16,235.42

e.
$16,689.54
Phản hồi
The correct answer is: $17,014.34

Câu hỏi 85
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Assume you could invest $25,000 at a continuously compounded rate of 10 percent. What
would your investment be worth at the end of 50 years?

a.
$3,648,029

FV = $25,000e.10(50)
FV = $3,710,329

b.
$3,710,329

c.
$2,933,054

d.
$3,500,824

e.
$3,911,215
Phản hồi
The correct answer is: $3,710,329

Câu hỏi 86
Đúng
Đạt điểm 1,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
The annual percentage rate:

a.
equals the effective annual rate when the interest on an account is designated as simple interest.

Đúng

b.
is the actual cost of a loan with monthly payments.

c.
is higher than the effective annual rate when interest is compounded quarterly.

d.
considers interest on interest.

e.
is the interest rate charged per period divided by (1 + n), when n is the number of periods per year.
Phản hồi
The correct answer is: equals the effective annual rate when the interest on an account is designated as
simple interest.

Câu hỏi 87
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

TH Manufacturers expects to generate cash flows of $129,600 for the next two years. At the end
of the two years the business will be sold for an estimated $3.2 million. What is the value of this
business at a discount rate of 14 percent?
a.
$2,675,703

PV = [$129,600[(1 − 1/1.142)/.14)] + $3,200,000/1.142

PV = $2,675,703

b.
$2,284,644

c.
$2,848,392

d.
$2,704,655

e.
$2,900,411
Phản hồi
The correct answer is: $2,675,703

Câu hỏi 88
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You are borrowing $5,200 at 7.8 percent, compounded monthly. The monthly loan payment is
$141.88. How many loan payments must you make before the loan is paid in full?

a.
42

$5,200 = $141.88{[1 − 1/(1 + .078/12)T]/(.078/12)}

ln1.3127 = Tln1.0065
T = 42

b.
36
c.
40

d.
48

e.
30
Phản hồi
The correct answer is: 42

Câu hỏi 89
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
Assume you borrow $12,000 for 5 years with equal annual repayments. If the interest rate on
the actual loan turns out to be higher than you anticipated, then the:

a.
first annual payment will repay more of the principal than anticipated.

b.
loan will still have a balance due at the end of the 5-year amortization period.

c.
total principal repaid will be less than anticipated.

d.
annual payments will be higher than you anticipated.

Đúng

e.
anticipated amortization schedule will still apply as the loan is still a 5-year loan.
Phản hồi
The correct answer is: annual payments will be higher than you anticipated.
Câu hỏi 90
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Scott has been offered an employment contract for ten years at a starting salary of $65,000 with
guaranteed annual raises of 5 percent. What is the current value of this offer at a discount rate
of 7 percent?

a.
$558,845.85

APV = $65,000({1 − [(1.05/1.07)10]}/(.07 − .05))

APV = $558,845.85

b.
$525,000.00

c.
$638,724.17

d.
$630,500.00

e.
$602,409.91
Phản hồi
The correct answer is: $558,845.85

Câu hỏi 91
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
You have been offered a job that pays an annual salary of $48,000, $51,000, and $55,000 over
the next three years, respectively. The offer also includes a starting bonus of $2,500 payable
immediately. What is this offer worth to you today at a discount rate of 6.5 percent?

a.
$132,283.56

PV = $2,500 + $48,000/1.065 + $51,000/1.0652 + $55,000/1.0653

PV = $138,066.75

b.
$130,983.56

c.
$138,066.75

d.
$134,383.56

e.
$129,640.14
Phản hồi
The correct answer is: $138,066.75

Câu hỏi 92
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You just won the lottery! As your prize you will receive $1,500 a month for 150 months. If you
can earn 7 percent, compounded monthly, on your money, what is this prize worth to you
today?

a.
$150,723.76

b.
$137,962.77
c.
$137,003.69

APV = $1,500{[1 − 1/(1 + .07/12)150]/(.07/12)}

APV = $149,676.91

d.
$148,104.26

e.
$149,676.91
Phản hồi
The correct answer is: $149,676.91

Câu hỏi 93
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Which one of these statements is correct concerning the time value of money?

a.
Increasing the FV decreases the PV.

b.
Decreasing the discount rate increases the FV.

c.
Decreasing the PV decreases the FV.

Đúng

d.
Increasing the initial cost of a project increases the project's NPV.

e.
Increasing the discount rate, increases the PV of a project.
Phản hồi
The correct answer is: Decreasing the PV decreases the FV.

Câu hỏi 94
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

At a discount rate of 5 percent, which one of the following is the correct formula for computing
the PV of $1 to be received one year from today?

a.
$1 × 1.052

b.
$1/1.05

Đúng

c.
$1

d.
$1/1.052

e.
$1 × 1.05
Phản hồi
The correct answer is: $1/1.05

Câu hỏi 95
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi
You expect an investment to return $11,300, $14,600, $21,900, and $38,400 annually over the
next four years, respectively. What is this investment worth to you today if you desire a rate of
return of 16.5 percent?

a.
$55,153.57

PV = $11,300/1.165 + $14,600/1.1652 + $21,900/1.1653 + $38,400/1.1654

PV = $55,153.57

b.
$58,700.89

c.
$63,732.41

d.
$64,253.91

e.
$59,928.16
Phản hồi
The correct answer is: $55,153.57

Câu hỏi 96
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Janet saves $3,000 a year at an interest rate of 4.2 percent. What will her savings be worth at
the end of 35 years?

a.
$230,702.57

AFV = $3,000[(1.04235− 1)/.042]

AFV = $230,040.06
b.
$229,317.82

c.
$230,040.06

d.
$236,063.66

e.
$234,868.92
Phản hồi
The correct answer is: $230,040.06

Câu hỏi 97
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

What is the effective annual rate if your credit card charges you 10.64 percent compounded
daily? (Assume a 365-day year.)

a.
11.22 percent

EAR = (1 + .1064/365)365− 1
EAR = .1122, or 11.22%

b.
11.95 percent

c.
12.01 percent

d.
10.79 percent

e.
11.48 percent
Phản hồi
The correct answer is: 11.22 percent

Câu hỏi 98
Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

What is the present value of $6,811 to be received in one year if the discount rate is 6.5
percent?

a.
$6,395.31

PV = $6,811/1.065
PV = $6,395.31

b.
$6,671.13

c.
$6,643.29

d.
$7,253.72

e.
$6,023.58
Phản hồi
The correct answer is: $6,395.31

Câu hỏi 99
Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You plan to invest $6,500 for three years at 4 percent simple interest. What will your investment
be worth at the end of the three years?

a.
$6,760.00

b.
$6,924.32

c.
$7,311.62

d.
$7,280.00

e.
$7,250.00

ValueYear 3 = $6,500 + $6,500(.04)(3)

ValueYear 3 = $7,280.00
Phản hồi
The correct answer is: $7,280.00

Câu hỏi 100

Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

The government imposed a fine on a firm that requires a payment of $100,000 today, $150,000
one year from today, and $200,000 two years from today. The government will hold the funds
until the final payment is collected and then donate the entire amount to charity. How much will
be donated if the government pays 3 percent interest on the held funds?

a.
$451,050

b.
$460,590

c.
$474,407

d.
$447,174

FV = $100,000(1.032) + $150,000(1.03) + $200,000

FV = $460,590

e.
$475,000
Phản hồi
The correct answer is: $460,590

Câu hỏi 101

Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Theo is depositing $1,300 today in an account with an expected rate of return of 8.1 percent. If
he deposits an additional $3,200 two years from today, and $4,000 three years from today, what
will his account balance be ten years from today?

a.
$15,182.53

b.
$15,699.54

c.
$14,044.89

d.
$16,412.31

e.
$17,741.71
FV = $1,300(1.08110) + $3,200(1.0818) + $4,000(1.0817)
FV = $15,699.54
Phản hồi
The correct answer is: $15,699.54

Câu hỏi 102

Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Anna has $38,654 in a savings account that pays 2.3 percent interest. Assume she withdraws
$10,000 today and another $10,000 one year from today. If she waits and withdraws the
remaining entire balance four years from today, what will be the amount of that withdrawal?

a.
$19,608.07

b.
$20,916.78

c.
$20,109.08

d.
$20,676.53

$38,654 = $10,000 + $10,000/1.023 + C4/1.0234

C4 = $20,676.53

e.
$19,341.02
Phản hồi
The correct answer is: $20,676.53

Câu hỏi 103

Đúng
Đạt điểm 1,00 trên 1,00
 Đặt cờ
Đoạn văn câu hỏi
An annuity stream of cash flow payments is a set of:

a.
equal cash flows occurring at equal periods of time over a fixed length of time.

Đúng

b.
equal cash flows occurring each time period forever.

c.
arbitrary cash flows occurring each time period for no more than 10 years.

d.
increasing cash flows occurring at set intervals of time that go on forever.

e.
either equal or varying cash flows occurring at set intervals of time for a fixed period.
Phản hồi
The correct answer is: equal cash flows occurring at equal periods of time over a fixed length of time.

Câu hỏi 104

Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

The interest rate charged per period multiplied by the number of periods per year is called the
_____ rate.

a.
effective annual
b.
annual percentage

Đúng

c.
periodic interest

d.
compound interest

e.
daily interest
Phản hồi
The correct answer is: annual percentage

Câu hỏi 105

Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from
today. If she invests these funds immediately and earns 9.6 percent annually, how much will
she have in savings 30 years from today?

a.
$620,008.77

b.
$646,072.91

c.
$641,547.39

FV = $10,000(1.09630) + $15,000(1.09629) + $25,000(1.09626)

FV = $641,547.39
d.
$586,124.93

e.
$591,414.14
Phản hồi
The correct answer is: $641,547.39

Câu hỏi 106

Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You have been awarded an insurance settlement of $250,000 that is payable one year from
today. What is the minimum amount you should accept today in exchange for this settlement if
you can earn 6.7 percent on your investments?

a.
$234,301.78

PV = $250,000/1.067
PV = $234,301.78

b.
$250,000.00

c.
$238,079.19

d.
$232,866.67

e.
$242,408.19
Phản hồi
The correct answer is: $234,301.78

Câu hỏi 107

Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

A credit card compounds interest monthly and has an effective annual rate of 12.67 percent.
What is the annual percentage rate?

a.
12.35 percent

APR = (1.12671/12− 1)(12)

APR = .1199, or 11.99%

b.
12.00 percent

c.
11.99 percent

d.
11.87 percent

e.
11.93 percent
Phản hồi
The correct answer is: 11.99 percent

Câu hỏi 108

Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Uptown Industries just decided to save $3,000 a quarter for the next three years. The money will
earn 2.75 percent, compounded quarterly, and the first deposit will be made today. If the
company had wanted to deposit one lump sum today, rather than make quarterly deposits, how
much would it have had to deposit to have the same amount saved at the end of the three
years?

a.
$33,428.87

APVADue = $3,000{[1 − 1/(1 + .0275/4)3(4)]/(.0275/4)}(1 + .0275/4)

APVADue = $34,678.35

b.
$34,441.56

c.
$33,687.23

d.
$34,678.35

e.
$34,998.01
Phản hồi
The correct answer is: $34,678.35

Câu hỏi 109

Đúng
Đạt điểm 1,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Jeanette expects to live 30 years after she retires. At the end of the first year of her retirement,
she wants to withdraw $35,000 from her savings. Each year thereafter, she wants to increase
her annual withdrawal by 3.5 percent. If she can earn 5.5 percent on her savings, how much
does she need to have in retirement savings on the day she retires?

a.
$764,458.87

APV = $35,000{[1 − (1.035/1.055)30]/(.055 − .035)}

APV = $764,458.87
b.
$648,909.18

c.
$832,004.01

d.
$862,001.34

e.
$919,028.56
Phản hồi
The correct answer is: $764,458.87

Câu hỏi 110

Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

Kay owns two annuities that will each pay $500 a month for the next 12 years. One payment is
received at the beginning of each month while the other is received at the end of each month. At
a discount rate of 7.25 percent, compounded monthly, what is the difference in the present
values of these annuities?

a.
$265.42

b.
$308.00

c.
$289.98

d.
$312.50

e.
$299.01
APVADue = $500{[1 − 1/(1 + .0725/12)12(12)]/(.0725/12)}(1 + .0725/12)
APVADue = $48,285.87

APV = $500{[1 − 1/(1 + .0725/12)12(12)]/(.0725/12)}

APV = $47,995.89

Difference = $48,285.87 − 47,995.89

Difference = $289.98

This can also be computed as:

Difference = (.0725/12)$47,995.89
Difference = $289.98
Phản hồi
The correct answer is: $289.98

Câu hỏi 111

Sai
Đạt điểm 0,00 trên 1,00

Đặt cờ
Đoạn văn câu hỏi

You have $2,500 to deposit into a savings account. The five banks in your area offer the
following rates. In which bank should you deposit your savings?

a.
Bank D: 3.67% compounded continuously

EARBank A = 3.75%

EARBank B = (1 + .0369/12)12− 1
EARBank B = .03753, or 3.753%

EARBank C = (1 + .0370/2)2− 1
EARBank C = .03734, or 3.734%

EARBank D = e.0367− 1
EARBank D = .03738, or 3.738%

EARBank E = (1 + .0365/4)4− 1
EARBank E = .03700, or 3.700%

Bank B offers the highest EAR.

b.
Bank A: 3.75%, compounded annually

c.
Bank C: 3.70% compounded semiannually

d.
Bank E: 3.65% compounded quarterly

e.
Bank B: 3.69%, compounded monthly
Phản hồi
The correct answer is: Bank B: 3.69%, compounded monthly