FIN – Quiz 3 based on Chapter 4

Quiz 3 is based on Chapter 4 material.If you have any questions pertaining to the Quiz format, email me directly at [email protected] Multiple Attempts Not allowed. This Test can only be taken once.Force Completion This Test can be saved and resumed later.Question Completion Status:Question 1How many years it will take to grow your money from $4,140 to $9,250 if you can earn an interest of 7% compounded quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 2Assume interest rate of 4%. A company receives cash flows of $81,403 at the end of years 4, 5, 6, 7, and 8, and cash flows of $289,772 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.Answer1 pointsQuestion 3Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6th year.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.Answer1 pointsQuestion 4Today, you are purchasing a $3,881 10-year car loan at 13 percent. You will pay annually at the end of each year. What is the amount of each payment?Answer1 pointsQuestion 5If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)?Answera. $827b. $1,176c. $833d. $828e. $7701 pointsQuestion 6The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $13,896 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $186,428. 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.Answer1 pointsQuestion 7Kelly starting setting aside funds 3 years ago to buy some new equipment for her firm. She has saved $4,490 each quarter and earned an average rate of return of 8 percent. How much money does she currently have saved for this purpose?Answer1 pointsQuestion 8How many years it will take you to quadruple (means 4 times) your money if you can earn 3.08% each year? Note: Do not write “years” in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 9Assume interest rate of 9%. Suppose that you receive $73,621 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.Answer1 pointsQuestion 10Gertrude Carter and Co. has an outstanding loan that calls for equal annual payments of $14,903 over the 10-year life of the loan. The original loan amount was $100,000 at an APR of 8 percent. How much of the third payment is interest?Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.Answer1 pointsQuestion 11What is the effective rate of 13% compounded monthly?Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.Answer1 pointsQuestion 12How many years it will take to grow your money from $4,118 to $6,536 if you can earn an interest of 6% compounded monthly? Note: Do not write “years” in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 13What is the future value of quarterly payments of $582 for 6 years at 5 percent?Answer1 pointsQuestion 14Assume interest rate of 4%. A company receives cash flows of $559 at the end of year 5, $242 at the end of year 7, and $962 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.Answer1 pointsQuestion 15How many years it will take you to double your money if you can earn 11% each year, given that compounding is quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 16023A:If you can double your money in 7 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.Answer1 pointsQuestion 17026:Say, you deposit $4,770 in a bank for 19 years. What is the amount you will have in the bank at the end of 19 years if interest of 4 % for first 6 years and interest of 7 % for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 18If you can triple your money in 7 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..Answer1 pointsQuestion 19How many months it will take to grow your money from $4,781 to $7,279 if you can earn an interest of 15% compounded monthly? Note: Do not write “months” in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 20Barrett Pharmaceuticals is considering a drug project that costs $192,279 today and is expected to generate end-of-year annual cash flows of $13,125, 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.Answer1 pointsQuestion 21What is the future value of $2,721 invested for 14 years at 17% if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 22How much do you need to invest today in order to have $5,977 at the end of 16 years if you are sure to earn an interest at the rate of 13%? Note: Do not put $ sign in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 23027:Say, you deposit $3,531 in a bank for 17 years. What is the amount you will have in the bank at the end of 17 years if interest of 6 % compounded monthly for first 8 years and interest of 7 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 24What is the future value of $846 invested for 23 years at 10% if interest is compounded semi-annually? Note: Do not put $ sign in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 25What is the future value of $4,402 for 8 years at 3 percent if interest is compounded semi-annually? Note: Do not enter “$” in your answer. Simply write down the number that you get as your answer.Answer1 pointsQuestion 26The ABC Company is considering a new project which will require an initial cash investment of $5,692. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are $2,889, $4,419, $4,463, and $5,459, respectively. If the appropriate discount rate is 12%, compute the NPV of the project.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.Answer1 pointsQuestion 27If the effective rate is 15%. 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.Answer1 pointsQuestion 28What is the future value of annual payments of $2,727 for 17 years at 7 percent?Answer1 pointsQuestion 29How much do you need to invest today in order to have $652 at the end of 11 years if you are sure to earn an interest at the rate of 7%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 30What should you be willing to pay in order to receive $687 annually forever, if you require 11% per year on the investment?Just enter the number up to 2 decimal points. Do not enter $ in the answer box.Answer1 pointsQuestion 31How much do you need to invest today in order to have $5,156 at the end of 22 years if you are sure to earn an interest at the rate of 7%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.Answer1 pointsQuestion 32The ABC Company is considering a new project which will require an initial cash investment of $17,248. The projected cash flows for years 1 through 4 are $7,945, $8,617, $9,024, and $5,467, respectively. If the appropriate discount rate is 4%, compute the NPV of the project.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.Answer1 pointsQuestion 33What is the future value of $4,678 invested for 10 years at 14% 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.Answer1 pointsQuestion 34In 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.Answer1 pointsQuestion 35If you can double your money in 22 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.Answer1 pointsQuestion 36If you receive $308 at the end of each year for the first three years and $619 at the end of each year for the next three years. What is the present value? Assume interest rate is 5%.Hint: This is an uneven cash flow problem. Use the CF function and solve for NPV to get the answer.