HI Finn, I have 60 minutes to have this back. Thank you!

1.In the second period, interest is earned on the principal as well as on the interest from the first period. The type of interest described in the previous statement is ________. (Points : 1)

fixed interest discount interest compound interest simple interest

Question 2.2.If an investor wants to know the present value of an investment, she is interested in ________. (Points : 1)

discounting annuities compounding annuities due

Question 3.3.The ________ is the amount to which your investment will grow. (Points : 1)

future value projected value present value existing value

Question 4.4.What is the future value of $1,000 at 4% interest compounded annually after five years? (Points : 1)

$3,125,000 $5,416.32 $1,216.65 $5,378.24

Question 5.5.What is the future value of a 10-year $1,000 annuity due at 6% interest? (Points : 1)

$7,359.53 $13,971.86 $7801.69 $7243.30

Question 6.6.What is the present value of a $1,000 perpetuity discounted back to the present at 6%? (Points : 1)

$60 $1,666.67 $166.67 $16,666.67

Question 7.7.What is present value of an asset that yields $500 in five years and $1,000 in 10 years if the discount rate is 6%? (Points : 1)

$373.63 $932.02 $56.78 $9466.27

Question 8.8.On graduating from college, you receive $3,000 in gifts from family and friends. You want to invest it for later use as a $15,000 down payment on a house. You have found an opportunity that locks in a 10% annual interest rate. How many years will it take you to turn your graduation gifts into a down payment? (Points : 1)

2.32 years 17 years 162 years 10 years

Question 9.9.After selling the family farm and splitting the proceeds with your siblings, your inheritance is $66,475. You plan to use that money to send your quadruplets to college in 10 years. You estimate that tuition will cost $200,000. What interest rate do you need to earn on your investment to meet your financial goals? (Points : 1)

12% -32% 41% 22.4%

Question 10.10.You put $250 in a savings account that yields 12% interest compounded quarterly. At the end of five years, how much money will be in the account?(Points : 1)

$317.36 $440.59 $451.53 $305.05

Question 11.11.Your bank has a savings account that will pay you 5.1% compounded quarterly, while your credit union is paying 5.05% compounded monthly. The effective annual rate at your bank is ________, and the effective annual rate at your credit union is ________. (Points : 1)

5.697%, 5.702% 5.198%, 5.169% 5.216%, 5.132% 5.814%, 5.923%

Question 12.12.Assume you will receive a $3,000 graduation gift when you graduate in two years. If that money was available to you today, you could invest it and earn 5%. What is the present value of that $3,000? (Points : 1)

$2,662.86 $2,172.90 $2,836.46 $2,721.09

Question 13.13.Calculate the annual payment on a $32,000, eight-year loan that is charging 6% annual interest. (Points : 1)

$4,183.65 $5,153.15 $3,916.57 $4,244.88

Question 14.14.Which of the following isNOTrequired in order to value an asset? (Points : 1)

interest or discount rate book value timing of cash flows future value

Question 15.15.In the generic formula for valuing any asset, which statement isTRUE? (Points : 1)

The symbolnrepresents the interest or discount rate. The symbolnrepresents the number of times compounding or discounting occurs during the year. The symbolnrepresents the number of periods during which the discounting occurs. The symbolnrepresents the present value.