Question 2 Not yet saved Marked out of 1.00 VFlag question You invested $5,000 in a savings deposit 6 quarters ago and it has grown to $5964 today. What nominal rate of annual interest (compounding quarterly) did you earn? (expressed as a percentage to two decimal places; don't use the % sign) Answer: Previous page Next page Students General lLearn Qulck Guides for students iLearn or IT question? helpmq Question 3 Not yet saved Marked out of 1.00 ll'Flag question You make a $6,000 deposit to an investment account today. The investment earns 6% pa compounding monthly for the first 12 months, then it earns 14%p,a compounding monthly for the next 3 years, At the end of the 4 years the balance in the account is (to the nearest whole dollar; don't use $ sign or commas) Answer: Previous page Next page Students General Question 4 Not yet saved Marked out of 1.00 VFlag question An advertised investment product promises to pay $449 per month for 81 months commencing in 1 month from today' lf the investment earns 95% pa compounding monthly, how much will the investment product cost today? (round to nearest cent; don't use $ sign or commas) Select one: a. $26771.83 (J b. $26983.77 c. $2164.92 d. $2370.58 Previous page Next page Question 5 Not yet saved Marked out of 1.00 VFlag question Which of the following is CORRECT? When discounting an amount to be received in one yearsa] time at a rate that is quoted as 12% compounding quarterly, we can: Select one: '9' A. Discount the amount using an effective monthly rate of 1% where the number of periods is 12. B. Discount the amount using an effective annual rate (EAR) of (1 +0.03) "4-1 =12.5509% where number of periods is 1. 74" C. Discount the amount using the annual rate of 12% where number of periods is 1. D. None of the above Previous page Next page Students General Question 6 Not yet saved Marked out of 1.00 VFlag question A savings plan requires 48 deposits of $484 per month commencing today, If the interest rate is 69% pa compounding monthly, the value of the in exactly 4 years from today will be closest to: Select one: '42" a. $26820.18 'L' b. $26666.85 U c. $2293.81 J d. $2145.75 Previous page Next page Question 7 Not yet saved Marked out of 1.00 VFlag question You owe your parents $23,000 (in present day dollars) and want to repay them in equal amounts the first to occur in 4 years from today and the other in 8 years from today. If the interest rate is 9.5% per annum compounding monthly, what will be the amount of each repayment? Select one: 'u' a. $19931 k." b. $33583 a. c. $49034 a. d. $33067 Previous page Next page Question 8 Answer saved Marked out of 1.00 l' Flag question You are given the equation below. C 1 _ PV=T(1_(1 +i)1)(1+') Which of the following statements is FALSE? Select one: A. The equation will indicate the present value of an annuity of 10 payments, where the first payment is made at the beginning of the first period. B. The equation will indicate the present value of an annuity of 10 payments, where the first payment is made at the end of the first period. '3" C. The equation will indicate the present value of an annuity of 10 payments, where the first payment is made now. D. The equation is suitable to calculate the present value of an annuity due. Previous page Next page Question 9 Not yet saved Marked out of 1.00 VFlag question You have the alternative of paying for university fees today for a payment of $16,000 or, you can select a payment plan where you pay $7,000 in 10 months from today and another $10,000 in exactly 23 months from today If the interest rate is 4.5%p.a. compounding monthly, what is th_e advantage that the payment plan has over the upfront payment? (expressed in present day value rounded to the nearest cent; do not show 5; sign or comma separators; if the payment plan is more costly than $16,000 today, your answer will show a negative eg. 300.35) Answer: Previous page Next page Question 10 Answer saved Marked out of 1.00 VFlag question Jill borrows $300,000 for 10 years at a fixed interest rate of E % pa (EAR) If the loan is repaid in 10 equal yearend payments over the 10 years, the amount of the loan outstanding at the end of the 5th year will be: Select one: '19" 3. Less than $150,000 '54" b. Greater than $150,000 '5" c. Equal to $150,000 Previous page Save and review Students General My home ACST101_FHFYR_2017_ALL_U Online Quizzes (assessable) Quiz 5 (Opens: SAT ist April 6am; Clc Question 1 Not yet saved Marked out of 1.00 '7 Flag question If money is invested for 9 years, the per annum simple interest rate equivalent to a nominal rate of 12.4%p.a compounding quarterly is (as a percentage rounded to three decimal places; don't use % sign): Answer: Next page A prize pays $16,000 each quarter for 6 years (24 payments)commencing in exactly 6 months' time. If the appropriate discount rate is 13.4% p.a compounding quarterly, the value of the prize today is (round to nearest cent; don't use $ sign or commas): [HlNT: the annuity is deferred] Select one: A a. $252568.27 A b. $261029.31 A c. $845572.02 A d. $55780.12 You are given the equation below. C FV = 7((1 + 01 1)(1 + 1') Which of the following statements is CORRECT? Select one: A A. The equation will indicate the future value of an annuity of 10 payments, immediately after the 10th payment A B. The equation will indicate the future value of an annuity due of 10 payments at the end of the 10th period. A C. The equation will work where I make 10 annual payments commencing at the end of the first year if I wish to know the value at the beginning of the 10th year. A D. None of the above are correct. If money is invested for 12 years at a simple interest rate of 5.6% per annum, the nominal interest rate per annum, compounding monthly, is (as a percentage rounded to three decimal places; no % sign): Answer: Jack borrows $500,000 for 10 years at a fixed interest rate of i% p.a (EAR). If the debt is repaid in equal year-end payments over the 10 years, the amount of interest Jack pays in the first 5 years (years 1 to 5): Select one: A a. Is less than the interest paid in the last 5 years A b. Is greater than the interest paid in the last 5 years Ac. ls equal to the interest paid in the last 5 years You invest $6,000 and earn $563 over 23 months. What nominal rate of annual interest (compounding monthly) did you earn? (expressed as a percentage to two decimal places; don't use the % sign) Answer: An advertised investment product promises to pay $500 per month for 55 months commencing in 1 month from today. If the investment earns 6.3% p.a compounding monthly, how much will the investment product cost today? (round to nearest cent; don't use $ sign or commas) Select one: f5- 3. $23831.85 ($- b. $23956.97 ff. c. $1938.34 57d. $2060.45 You owe your parents $13,000 (in present day dollars) and want to repay them in equal amounts the rst to occur in 3 years from today and the other in 8 years from today. If the interest rate is 5.3% per annum compounding monthly, what will be the amount of each repayment? Select one: FT, a. $8619 c b. $15236 m c. $19847 (7 d. $15179 Which of the following is CORRECT? When discounting an amount to be received in one years time at a rate that is quoted as 12% compounding quarterly, we can: Select one: i"? A. Discount the amount using an effective monthly rate of 1% where the number of periods is 12. l" B. Discount the amount using an effective annual rate (EAR) of (1+0.03)"4-1 =12.5509% where number of periods is 1. C c. Discount the amount using the annual rate of 12% where number of periods is 1. n D. None of the above You have the alternative of paying for university fees today for a payment of $16,000 or, you can select a payment plan where you pay $8,000 in 9 months from today and another $9,000 in exactly 24 months from today. If the interest rate is 9.7%p.a. compounding monthly, what is th_e advantage that the payment plan has over the upfront payment? (expressed in present day value rounded to the nearest cent; do not show 55 sign or comma separators; if the payment plan is more costly than $16,000 today, your answer will show a negative eg. -300.35) Answer: Suppose you will receive $15,000 in 9 months and another $9,000 in 19 months. If the discount rate is 6% per annum (compounding monthly) for the first 12 months, and 12% per annum (compounding monthly) for the next 7 months, what single amount received today would be equal to the two proposed payments? (answer to the nearest whole dollar; don't include the 51; sign or commas)