Question
1) What is the future value in ten years of $100 invested today at 8%? a. $108 b. $1,449 c. $216 d. $180 2) Which
1) What is the future value in ten years of $100 invested today at 8%?
a. | $108 | |
b. | $1,449 | |
c. | $216 | |
d. | $180 |
2) Which of the following help to explain the fact that a dollar today is worth more than a dollar in the future?
(1) Positive rates of inflation
(2) Opportunity cost of lost earnings
(3) People prefer consumption now rather than later
(4) Uncertainty of future
a. | 1 and 2 only | |
b. | 2, 3 and 4 | |
c. | 1, 2, 3, and 4 | |
d. | 1, 2 and 3 |
3) What is the approximate future value of a portfolio given that the client has investing $250 at the end of each year for 20 years and the investments earned 9% annually?
a. | $13,900 | |
b. | $5,450 | |
c. | $12,800 | |
d. | $14,190 |
4) Which formula is appropriate to solve for the beginning-of-the-month payment required for a car loan if you know the interest rate, length of the loan, and the borrowed amount?
a. | Present value | |
b. | Annuity due | |
c. | Future value | |
d. | Ordinary annuity |
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