FIN 340 Financial Market&Institutions Spring 2018 Quiz 3 In-class Name: 1. If you deposit $10,000 in a savings account at an annual interest rate of 6%, how much will you have in the account at the end of three years? A) $8,396 B) $10,600 C) $11,800 D) S11,910 2. What is the present value of the below stream of cash flow PV-? $200 $300 $400 $500 i-5% A) $897.51 B) $1,026.28 C) S1,219.47 D) None of the above 3. What is the future value of the below stream of cash flow: $200 $300 $400 $500 1-5% FV-? A) $1,482.27 B) $1545.36 C) S1,615.93 D) None of the above 4. Debt instruments are also called A) equities B) credit market instruments. C) prospectuses. D) units of account. 5. A debt instrument represents A) an ownership claim by the purchaser on the issuer. B) a promise by a borrower to repay principal plus interest to a lender C) an attempt by a borrower in default to restore his or her credit. D) a nontaxable asset, owned primarily by large corporations