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Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have
| Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses discounted cash flow analysis. See how you would do by answering the following questions. | ||||||||
| a. We sometimes need to find how long it will take a sum of money to grow to some specified amount. For example, if a company's sales are growing at a rate of 13.25% per year, how long will it take sales to double? | ||||||||
| NPER = | ||||||||
| b. If you want an investment to double in 5 years, what annual interest rate must it earn? | ||||||||
| Rate = | ||||||||
| c. What is the future value of $2,250 after 8 years under 13.25% annual compounding? | ||||||||
| FV = | ||||||||
| What is the FV with semiannual compounding? | ||||||||
| FV = | ||||||||
| What is the FV with quarterly compounding? | ||||||||
| FV = | ||||||||
| What is the FV with monthly compounding? | ||||||||
| FV = | ||||||||
| What is the FV with daily compounding? | ||||||||
| FV = | ||||||||
| d. What would the required payment be on a $20,000 loan that is to be repaid in 5 equal installments at the end of each of the next 5 years if the interest rate is 7.50%? | ||||||||
| PMT = | ||||||||
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Management And Compliance Audit A Complete Guide
Authors: Gerardus Blokdyk
2020 Edition
0655927727, 978-0655927723
