Finance 3220 Problem Set 1

What is the current estimation of $150,000 to be gotten 8 years from today if the rebate 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, exacerbated every year. 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 so 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 acquire a normal of 8. 5 percent rather than only 8 percent on your reserve funds? Question 4 alternatives: | 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 per 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 choices: | A)|  single amount| | B)|  future value| | C)|  present value| D)|  simple amount| | E)|  compounded esteem | Question 6 (2 focuses) Andy stored $3,000 toward the beginning of today into a record that pays 5 percent intrigue, intensified every year. Spike likewise stored $3,000 toward the beginning of today into a record that pays 5 percent intrigue, aggravated every year. Andy will pull back his advantage profit and spend it at the earliest opportunity. Spike will reinvest her advantage profit into her record. Given this, which one of the accompanying proclamations is valid? Question 6 alternatives: | A)|  Barb will procure more intrigue the principal year than Andy will. | B)|  Andy will procure more enthusiasm for year three than Barb will. | C)|  Barb will acquire enthusiasm on intrigue. | D)|  After five years, Andy and Barb will both have earned a similar measure of premium. | E)|  Andy will gain accruing funds. | 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 intensified 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 back, you kept $30,000 into a retirement investment account at a fixed pace of 5. 5 percent. Today, you could gain a fixed pace of 6. 5 percent on a comparable kind record. Be that as it may, your rate is fixed and can't be balanced. How significantly less might you be able to have stored a year ago on the off chance 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 choices: | 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 speculation one year from now? Question 9 alternatives: | A)|  future value| | B)|  present value| | C)|  principal amounts| | D)|  discounted value| | E)|  invested head | Question 10 (2 focuses) One year prior, you contributed $1,800. Today it is worth $1,924. 62. What pace of premium did you acquire? Question 10 alternatives: | A)|  6. 59 percent| | B)|  6. 67 percent| | C)|  6. 88 percent| | D)|  6. 92 percent| | E)|  7. 01 percent |