Finance 3220 Problem Set 1

What is the current estimation of $150,000 to be gotten 8 years from today if the markdown rate is 11 percent? Question 1 choices: | A)|  $65,088. 97| | B)|  $71,147. 07| | C)|  $74,141. 41| | D)|  $79,806. 18| | E)|  $83,291. 06 | Question (2 focuses) According to the Rule of 72, you can do which one of the accompanying? Question 2 choices: | A)|  double your cash in five years at 7. 2 percent interest| | B)|  double your cash in 7. 2 years at 8 percent interest| | C)|  double your cash in 8 years at 9 percent interest| | D)|  triple your cash in 7. a long time at 5 percent interest| | E)|  triple your cash at 10 percent enthusiasm for 7. 2 yearsâ | Question 3 (2 focuses) On your ninth birthday celebration, you got $300 which you contributed at 4. 5 percent intrigue, aggravated yearly. Your venture is presently worth $757. How old would you say you are today? Question 3 choices: | A)|  age 29| | B)|  age 30| | C)|  age 31| | D)|  age 32| | E)|  age 33| Question 4 (2 focuses) You simply got a $5,000 blessing from your grandma. You have chosen to set aside this cash with the goal that you can blessing it to your grandkids 50 years from now.How much extra cash will you need to blessing to your grandkids on the off chance that you can procure a normal of 8. 5 percent rather than only 8 percent on your investment funds? Question 4 choices: | A)|  $47,318. 09| | B)|  $52,464. 79| | C)|  $55,211. 16| | D)|  $58,811. 99| | E)|  $60,923. 52 | Question 5 (2 focuses) Shelley won a lottery and will get $1,000 every year for the following ten years. The estimation of her rewards today limited at her markdown rate is called which one of the accompanying? Question 5 alternatives: | A)|  single amount| | B)|  future value| | C)|  present value| D)|  simple amount| | E)|  compounded esteem | Question 6 (2 focuses) Andy saved $3,000 toward the beginning of today into a record that pays 5 percent intrigue, aggravated every year. Point likewise saved $3,000 at the beginning of today into a record that pays 5 percent intrigue, exacerbated every year. Andy will pull back his advantage income and spend it as quickly as time permits. Spike will reinvest her advantage profit into her record. Given this, which one of the accompanying explanations is valid? Question 6 alternatives: | A)|  Barb will win more intrigue the principal year than Andy will. | B)|  Andy will acquire more enthusiasm for year three than Barb will. | C)|  Barb will win enthusiasm on intrigue. | D)|  After five years, Andy and Barb will both have earned a similar measure of premium. | E)|  Andy will win progressive accrual. | Question 7 (2 focuses) You put $1,650 in a record that pays 5 percent basic intrigue. What amount more would you be able to have earned over a 20-year time frame if the premium had exacerbated every year? Question 7 choices: | A)|  $849. 22| | B)|  $930. 11| | C)|  $982. 19| | D)|  $1,021. 15| | E)|  $1,077. 94 | Question 8 (2 points)A year prior, you kept $30,000 into a retirement bank account at a fixed pace of 5. 5 percent. Today, you could procure a fixed pace of 6. 5 percent on a comparable sort account. In any case, your rate is fixed and can't be balanced. How significantly less would you be able to have saved a year ago in the event that you could have earned a fixed pace of 6. 5 percent and still have a similar sum as you presently will when you resign 38 years from today? Question 8 alternatives: | A)|  $2,118. 42 less| | B)|  $3,333. 33 less| | C)|  $5,417. 09 less| | D)|  $7,274. 12 less| | E)|  $9,234. 97 less |Question 9 (2 focuses) You are putting $100 today in an investment account at your nearby bank. Which one of the accompanying terms alludes to the estimation of this venture one year from now? Question 9 alternatives: | A)|  future value| | B)|  present value| | C)|  principal amounts| | D)|  discounted value| | E)|  invested head | Ques tion 10 (2 focuses) One year prior, you contributed $1,800. Today it is worth $1,924. 62. What pace of premium did you procure? Question 10 alternatives: | A)|  6. 59 percent| | B)|  6. 67 percent| | C)|  6. 88 percent| | D)|  6. 92 percent| | E)|  7. 01 percent |