TEST 3 - CORPORATE FINANCE - FINALS

What is the present value of $10,000 to be received in 5 years if the interest rate is 8%?

• $6,710.68

• $6,610.68

• $7,671.68

• $7,160.68

If you invest $5,000 today at an annual interest rate of 6%, what will be the future value of your investment after 10 years?

• $8,347.91

• $8,447.91

• $8,547.91

• $8,247.91

What is the present value of $1,000 to be received in 3 years if the interest rate is 5% compounded annually?

• $853.84

• $873.84

• $863.84

• $833.84

If you want to have $50,000 in 10 years, how much should you invest today if the interest rate is 7% compounded annually?

• $23,046.22

• $24,064.22

• $23,064.22

• $24,046.22

What is the future value of $2,500 invested today at an annual interest rate of 4% for 8 years?

• $3,444.09

• $3,466.09

• $3,455.09

• $3,433.09

If you want to have $1,000,000 in 20 years and the interest rate is 8%, how much should you invest annually in an annuity?

• $16,536.12 per year

• $15,536.12 per year

• $16,563.12 per year

• $15,563.12 per year

What is the future value of an annuity of $5,000 paid annually for 10 years if the interest rate is 6%?

• $78,722.76

• $78,272.76

• $78,727.76

• $78,227.76

If you want to have $500,000 in 25 years and the interest rate is 5%, how much should you invest monthly in an annuity?

• $1,963.92 per month

• $1,936.92 per month

• $1,639.92 per month

• $1,693.92 per month

What is the present value of an annuity of $10,000 paid annually for 15 years if the interest rate is 7%?

• $96,852.68

• $98,852.68

• $97,852.68

• $95,852.68

If you want to have $1,000,000 in 30 years and the interest rate is 4%, how much should you invest quarterly in an annuity?

• $4,147.67 per quarter

• $4,471.67 per quarter

• $4,741.67 per quarter

• $4,174.67 per quarter