Question
1. When describing the time value of money, the phrase a dollar today is worth more than a dollar tomorrow means: A. A dollar today
1. When describing the time value of money, the phrase a dollar today is worth more than a dollar tomorrow means:
A. A dollar today buys more goods/services than a dollar tomorrow | ||
B. A dollar today buys more goods/services than a dollar tomorrow | ||
C. both of these explain the time value of money | ||
D. None of these are true |
2. Investments in BONDS and STOCKS should be considered investment projects
A. True
B. False
3. Clara bought a one-family home in Park Slope in 2002 for $900,000. In 2020, she sold the home for 1.4 million dollars. Claras return on investment (ROI) is
A. 5% | ||
B. 55.5% | ||
C. 500,000 | ||
D. 555% |
4. Dina is 30 years old and wants to retire in Florida at age 55. She estimates that a condo in Florida will cost around $300,000 when she turns 55. She has already saved $45,000. If she invests the money in a bond that pays 8% return every year, will she reach her goal?
A. No, she will need to invest that money for 45 years to reach her goal | ||
B. No, she needs to have saved 53,805.37 | ||
C. Yes, she will have 308,181 | ||
D. Yes, she will have 333,000 |
5. Nancy will need $500,000 in 20 years to buy a house on the water in Ft. Lauderdale Florida. In order to reach her goal, she decides to invest in a real estate stock that has paid a consistent annual dividend of 14%. How much does Jenny have to invest in the fund each month in order to achieve her goal of 500,000?
A. Need more information to answer this question | ||
B. 589.00 | ||
C. 2375.00 | ||
D. 384.27 |
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