Financial Management - Long Quiz

Suppose you need $200 to buy textbooks next year. You can earn 5 percent on your money. How much do you have to put up today?

Answer needs to have two decimal points.

• 190.35

• 190.64

• 190.51

• 190.48

The future value of $100 received today and deposited at 6 percent for four years is

• $126

• $79

• $124

• $116

The present value of $200 to be received 10 years from today, assuming an opportunity cost of 10 percent is

• $120

• can't be determined

• $77

• $300

Clara wants to buy a car worth $25,000, 3 years from now. To accumulate the

$25,000, she needs to make equal annual end-of-year deposits into an account

paying annual interest of 5 percent. How much should the annual deposit be?

• 7,930

• 6,490

• 9,510

• 6,905

The amount money a person expects to have in the future is called

• Principal
• Future Value
• Simple Interest
• Present Value

The "time value of money" means that

• money paid out today less value than if the money is paid out in the future

• money received today is worth more than the same amount of money received in the future

• the more time a person has to save, the lower the return on the money

• the longer money is held, the less likely it will be spent

The amount of money a person expects to have in the future is called

• Principal

• Interest

• Present value

• Future value

What is the future value of $1000 compounded annually at 8% for five years ?

• $1,080

• $1,400

• $1,469

• $1,800

Refer to the study of the economic behaviour of individual components like industries, firms, and households.

• Macroeconomics

• Consumer Behaviour

• Microeconomics

• Positive Economics

Refers to all plots of ground and other natural resources used in the production of goods and services.

• Land

• Labor

• Entrepreneurial Ability

• Capital