QUESTION 1 If the effective rate is 17%. What is the nominal rate if compounding is daily. Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points. QUESTION 2 How many months it will take to grow your money from $3,769 to $7,149 if you can earn an interest of 7% compounded monthly? Note: Do not write “months” in your answer. Simply write the number in the answer box. QUESTION 3 Gertrude Carter and Co. has an outstanding loan that calls for equal annual payments of $14,903 over the 10-year life of the loan. The original loan amount was $100,000 at an APR of 8 percent. How much of the third payment is interest? Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points. QUESTION 4 What should you be willing to pay in order to receive $947 annually forever, if you require 6% per year on the investment? Just enter the number up to 2 decimal points. Do not enter $ in the answer box. QUESTION 5 How many years it will take to grow your money from $4,324 to $8,358 if you can earn an interest of 7% compounded quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box. QUESTION 6 027: Say, you deposit $4,381 in a bank for 19 years. What is the amount you will have in the bank at the end of 19 years if interest of 6 % compounded monthly for first 5 years and interest of 9 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box. QUESTION 7 How many years it will take you to quadruple (means 4 times) your money if you can earn 3.9% each year? Note: Do not write “years” in your answer. Simply write the number in the answer box. QUESTION 8 The ABC Company is considering a new project which will require an initial cash investment of $5,474. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are $3,514, $3,809, $2,905, and $5,345, respectively. If the appropriate discount rate is 13%, compute the NPV of the project. Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. QUESTION 9 How much do you need to invest today in order to have $5,384 at the end of 22 years if you are sure to earn an interest at the rate of 11%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box. QUESTION 10 Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6 th year. Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. QUESTION 11 The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $10,113 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $179,869. At what interest rate would this be a fair deal? Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box. QUESTION 12 In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years. Do not enter the symbol $ in your answer. Enter your answer as a positive number. Simply enter the answer rounded off to two decimal points. QUESTION 13 If you receive $321 at the end of each year for the first three years and $692 at the end of each year for the next three years. What is the present value? Assume interest rate is 11%. Hint: This is an uneven cash flow problem. Use the CF function and solve for NPV to get the answer. Just enter the number up to 2 decimal points. Do not enter $ in the answer box. QUESTION 14 Assume interest rate of 8%. A company receives cash flows of $96,921 at the end of years 4, 5, 6, 7, and 8, and cash flows of $277,114 at the end of year 10. Compute the future value of this cash flow stream. Do not enter the symbol $ in your answ…
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