Q 1. Mary wants to have $150 after six years by depositing $100 today and earning six percent interest compounded annually for the next six years. Can Mary attain her financial goal of having $150 lump sum six years later?

Select one:

a. No, present value is less than $150.

b. Yes, present value is more than $150.

c. Yes, future value is more than $150.

d. No, future value is less than $150.

Question 2

If you have an investment that will receive $100 at the end of year one, $200 at the end of year two, and $300 at the end of year three, what is the market value of this investment today if the discount rate is 13 percent annually?

Select one:

a. $553

b. $653

c. $453

d. $753

Question 3

Hazel needs to plan how large a mortgage she can afford. How much would she need to pay monthly on a mortgage of $200 000 at six percent interest, calculated semi-annually and amortized over 30 years?

Select one:

a. $1111

b. $555

c. $1190

d. $1199

Question 4

What does the personal cash flow statement measure?

Select one:

a. Cash inflows and outflows

b. The rate of cash flow

c. Net worth

d. Liabilities

Question 5

Which of the following is required in creating a cash flow statement?

Select one:

a. Amounts used for expenses

b. The values of all assets

c. Value of all liabilities

d. The ideal emergency fund amount