Finance All Mcgraw Hill Exam Question With Verified Answers

Finance All Mcgraw Hill Exam Question With Verified Answers A dollar invested today at 7.5 percent interest compounded annually will be worth _______ one year from now. $1.075 $1.75 $1.0075 - answer$1.075 What is the future value of $100 invested for 4 years at 10% interest? $144.00 $145.54 $140.00 $146.41 - answer$146.41 A dollar invested today at 7.5 percent simple annual interest will be worth _______ one year from now. $1.1556 $1.75 $1.075 - answer$1.075 Assume you have $100 to invest today. Investing it at 5% interest compounded annually will yield _______ in 10 years, while investing it at 6% interest compounded annually will yield _______ in 10 years. $179.08; $162.89 $162.89; $179.08 $179.08; $179.08 $162.89; $175.00 - answer$162.89; $179.08 Compound growth means that value increases after t periods by: (1 + growth rate)^t 1/growth rate x t growth ratet (1 - growth rate)^t - answer(1 + growth rate)^t Joseph signs a contract with a company that will pay him $25,000. Following the principles of the time value of money, Joseph would be best off if he received payment: at the end of the project at the beginning of the project in 3 equal monthly sums - answerat the beginning of the project Discounting a future value FV at interest rate r over time t is termed a ______________ calculation. discounted cash-flow present interest discounted present factor discounted interest - answerdiscounted cash-flow Which of the following is the correct formula for the discount factor? (1+r) 1/(1+r) x t 1/(1+r)^t 1/(1+r) - answer1/(1+r)^t Another name for the interest rate used to calculate PV is the ______ rate. money market discount federal funds inflation - answerdiscount