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QUESTION 1 Determine the accumulated value of $4100.00 compounded semi-annually at 8% p.a. for seven years. $7089.80 $7099.87 $8081 $7920 1 points QUESTION 2 Find

QUESTION 1

  1. Determine the accumulated value of $4100.00 compounded semi-annually at 8% p.a. for seven years.

    $7089.80

    $7099.87

    $8081

    $7920

1 points

QUESTION 2

  1. Find the present value if amount at maturity is $36,527.13 at 5.3% compounded annually for 10 years.

    $21,800.75

    $21,791.75

    $21,793.74

    $21,700.91

1 points

QUESTION 3

  1. Find the maturity value of $5700.00 at 11.2% p.a. for seven years compounded monthly.

    $12 438.92

    None out of given

    $12 400.50

    $12 450.01

1 points

QUESTION 4

  1. The more often compounding occurs for an investment, the ________________ the rate of return.

    1.

    More frequent

    2.

    greater

    3.

    Unequal

    4.

    None of the above

1 points

QUESTION 5

  1. Blended payment is the one that includes:

    1.

    Monthly interest and annual interest

    2.

    Principal and daily interest

    3.

    Yearly interest with some portion of daily interest accrued

    4.

    Principal and interest

1 points

QUESTION 6

  1. The interest rate is 10 percent a year and is compounded monthly. If you wanted to determine the total interest at the end of ten years, what would be the number of compounding periods (n) that you would use?

    1.

    120

    2.

    720

    3.

    20

    4.

    144

1 points

QUESTION 7

  1. To what future value will a principal of $7100.00 amount in three years at 8% p.a. compounded:

    a) Quarterly b) Semi annually

    Choose the statments that are correct (You could have more than one correct statements)

    A.

    B, C, and D are correct

    B.

    Amount at the end of 3 years compounded Monthly is $14483.20

    C.

    Maturity value compounded quaterly exceeds the vlaue compounded semi-annually by $5499.43

    D.

    Amount at the end of 3 years compounded semi-annualy is $8983.77

    E.

    A, B and D are correct

    F.

    Amount at end of three years compounded quaterly is $14483.20

2 points

QUESTION 8

  1. Mr Joe Skinner aims to invest $200,000 at 3.6% for 20 years, hoping to get $400,000 at the maturity. This is an unrealistic, unattainable goal as he is unlikely to get $400,000 at the given rate and time period.

    True

    False

1 points

QUESTION 9

  1. Simple Interest and compound interest is always same for the first years irrespective of the compounded frequency.

    True

    False

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