A total of 40 records were returned.

QID 1.   What is the present value of $1,200 to be paid in 10 years at 6% interest compounded monthly?   (View Detailed Soution)  

QID 2.   Find the difference between the present value of $500 in 4 years at 6.5% compounded monthly and the same amount in 4 years at 6.5% compounded continuously. Which option offers the higher return?   (View Detailed Soution)  

QID 3.   Which investment is worth more today at 4% compounded annually: $1,000 to be paid in 8 years or $800 to be paid in 4 years? Which investment is worth more if the interest rate is 6% compounded annually?   (View Detailed Soution)  

QID 4.   You have an option to purchase a $5,000 note that is due in 3 years for $4,100. Alternatively you can invest the $4,100 in a CD that pays 3% every 6 months over the same period. Which offers the higher return? Which is the preferred investment?   (View Detailed Soution)  

QID 5.   How much more will you earn on $1,000 left on deposit for 6 years at 8% if interest is compounded daily rather than semiannually?   (View Detailed Soution)  

QID 6.   If $10 accumulates to $16 in 10 years, how large will $50 grow in 20 years?   (View Detailed Soution)  

QID 7.   At 5% annual interest, what is the difference in the present value of $100 paid at the end of each year for 10 years and $100 paid at the beginning of each year?   (View Detailed Soution)  

QID 8.   Three debts of $1,050, $950, and $1,000 were due 9, 10, and 11 years ago. However, they were settled by a single payment of $3,000 ten years ago. What was the effective rate of interest on this transaction?   (View Detailed Soution)  

QID 9.   Find the present value of $1,000 due at the end of 10 years if interest is calculated at a) a nominal annual rate of 6% compounded monthly and b) an effective quarterly rate of 1.5%.   (View Detailed Soution)  

QID 10.   How long does it take for money left on deposit to double at 8% with a) annual compounding? b) monthly compounding?   (View Detailed Soution)  

QID 11.   If $500 grows to $1,500 at a specific interest rate over a given period of time, what will be the present value of $9,000 under the same terms?   (View Detailed Soution)  

QID 12.   At an annual rate of 5%, what is the amount owed on a $10,000 debt at the end of 5 years if the following payments are made: $2,000 at 4 months, $1,000 at 8 months, and $500 at 11 months?   (View Detailed Soution)  

QID 13.   You have the option of making a 4 year investment at a rate of a) 6.00% per year simple interest or b) 5.50% compounded quarterly. Which option offers the higher return?   (View Detailed Soution)  

QID 14.   A one-year $1,000 note at 9% simple interest is discounted at the bank after 90 days for 5% simple interest. How much is received for the note?   (View Detailed Soution)  

QID 15.   What is the effective annual rate of interest being earned by an investor who receives $5 interest each month on a $500 note? How much would the monthly payment be if the investor were earning 10% compounded quarterly?   (View Detailed Soution)  

QID 16.   An investor loaned $5,000 10 years ago. The investment earned an effective annual rate of interest of 9% for the past 6 years and is now worth $9,950. a) Assuming monthly compounding, what is the annual nominal interest rate earned for the first 4 years; b) what is the annual effective rate of interest for the first 4 years?   (View Detailed Soution)  

QID 17.   Andy borrows $5,000 from Sonia in exchange for a note promising repayment in 5 years at 8% compounded monthly. One year after the note is made, Sheldon buys the note from Sonia at a price that yields 9% annually. a) How much did Sheldon pay Sonia for the note? b) What was the dollar amount of Sonia's earnings on the note? c) Why didn't Sonia earn 8%?.   (View Detailed Soution)  

QID 18.   You buy a 4 year note that is priced to yield 5% at $4,598. What is the value of the note at maturity?   (View Detailed Soution)  

QID 19.   You deposit $5,000 into a bank accounting paying 2% compounded monthly. a) How much do you have at the end of 10 years? b) How much do you have at the end of 10 years if the interest rate is 7%?   (View Detailed Soution)  

QID 20.   The present value of $1,000 to be received at the end of 8 years is $800. a) What is the accumulated value of $800 at the end of 10 years? b) What is the quarterly rate of interest earned? c) What is the monthly rate of interest earned?   (View Detailed Soution)  

QID 21.   One institution offers an annual rate of 5% compounded monthly while another offers a rate of 5.1% compounded quarterly. Which offers the higher return?   (View Detailed Soution)  

QID 22.   If money is worth 12% simple interest, what is the best offer for the buyer of a $10,000 invoice: a) 5% cash off for paid on delivery; b) 3% off for payment in 30 days; c) payment in full after 30 days?   (View Detailed Soution)  

QID 23.   You are offered a loan which you must settle by payment of $1,000 at the end of one year. Instead you propose to repay the loan by making equal payments at the end of 6 months for the next 2 years. a.) If money is worth 6%, what is the amount of the semiannual payment you propose? b.) What is the difference between the sum of the payments made and the future value of the note at the end of the second year? c.) How do you account for this difference?   (View Detailed Soution)  

QID 24.   Find the accummulated value after 10 years of an annuity of $100 per year at 5% interest.   (View Detailed Soution)  

QID 25.   A Treasury bill with a face value of $10,000 and 100 days to maturity is quoted to yield 8.5%. What is its current price? What is the bond equivalent yield?   (View Detailed Soution)  

QID 26.   How much interest will be earned on $1,000 at 5.5% compunded daily over 180 days? What is the effective annual rate of interest earned? (Assume a 360 day year).   (View Detailed Soution)  

QID 27.   You need to have $5,000 in 3 years. How much do you need to invest today if it will earn 6% compunded annually?   (View Detailed Soution)  

QID 28.   You are entitled to receive $10,000 in 5 years. What is this right worth today if the appropriate discount rate is 5% compounded monthly?   (View Detailed Soution)  

QID 29.   You won the lottery and are entitled to receive annual payments of $1 million dollars for the next 20 years starting a year from now. If the appropriate discount rate is 6% compounded annually, what is the current value of your winnings?   (View Detailed Soution)  

QID 30.   Under your retirement plan you are entitled to receive a payment of $200 each month starting when you turn 65. You just turned 45 and have a life expectancy of 80 years. What is the current value of your retirement benefits at 8% compounded monthly?   (View Detailed Soution)  

QID 31.   You want to retire in 30 years at age 60. a) Assuming you can earn 9% monthly, how much do you need to invest each month to accumulate $1 million by age 60? b) Assuming the same return and a life expectancy of 80 years, how much can you then withdraw each month from your $1M retirement fund starting 1 month after you turn 60?   (View Detailed Soution)  

QID 32.   You plan to deposit $100 into a savings account at the end of each month for the next 5 years. a) At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b) How much difference would it make if the payments were made at the beginning of the month rather than at the end?   (View Detailed Soution)  

QID 33.   You take out a conventional fixed-rate mortgage to purchase a house for $350,000. What is your monthly payment if the terms of the loan are 9% over 30 years?   (View Detailed Soution)  

QID 34.   You plan to purchase a house for $250,000 by making a 10% down payment and taking out a conventional fixed rate mortgage at 9%. a) What is the difference between the monthly payment on a 30-year mortgage and the monthly payment on a 15-year mortgage? b) What is the difference in the total interest paid under both mortgages?   (View Detailed Soution)  

QID 35.   How much should you pay for a 30-year bond that has a $10,000 face and a semiannual coupon of $250 if the appropriate discount rate is 8% and the bond has 10 years left until maturity? Does this price reflect a premium or a discount to the face value and why? What was the bond originally priced to yield?   (View Detailed Soution)  

QID 36.   You have the option of purchasing a machine today for $50,000 that will save you $6,000 annually over the next 12 years. Assuming annual compounding, what are the net savings from the purchase of the machine if a) the cost of capital is 4%; and b) the cost of capital is 8%?   (View Detailed Soution)  

QID 37.   Approximately how many years does it take for $50 to grow to $125 at 8%?   (View Detailed Soution)  

QID 38.   You borrow $1,000 for 6 years and are obligated to make annual payments of $200 starting at the end of the first year. What is the interest rate you are being charged?   (View Detailed Soution)  

QID 39.   You take out a 5-year $250,000 loan at 5% monthly interest. Under the terms of the loan, the interest rate is to be adjusted to 8% at the end of the second year. a) What is the initial payment on the loan at 5%? b) What is the loan balance at the end of the second year? c) What is the new payment after the adjustment to 8%? d) What is the change in the payment amount?   (View Detailed Soution)  

QID 40.   You have $100,000 in a savings account that earns 4.5% compounded daily. If you withdraw $1,000 at the end of each month for two years, how much will remain in the account at that time?   (View Detailed Soution)