Correct 94%
You have $300,000 that you want to invest in a one year Certificate of Deposit (CD) with a 4% annual interest rate. What will be the value of that CD in a year?
Question 1 options:
$315,000wrong 

$312,000 

$420,000 

$301,200 
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Which of the following is the correct formula for calculating future value with simple interest?
Question 2 options:
FV = PV * (1+i*t) 

FV = PV * (1+i)t 

FV = PV * i 

All of these answers 
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You plan to invest $100,000 in a 3 year Certificate of Deposit that has a 5% compound interest rate. What is its future value?
Question 3 options:
$115,000 

$115,763 

$115,927 

$105,000 
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You plan to invest $100,000 in a 3 year Certificate of Deposit that has a simple interest rate of 5%. What is its future value?
Question 4 options:
$115,000 

$115,763 

$115,927 

$105,000 
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What is the future value in 30 years of $100,000 invested today in a savings account earning a 1% compound interest rate every year (rounded up to the nearest dollar)?
Question 5 options:
130000 

134785 

More than $134785 

30000 
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What is the future value in 30 years of $100,000 invested today in a savings account earning a 1% simple interest rate every year (rounded up to the nearest dollar)?
Question 6 options:
30,000
130,000
134,785
More than $134,785
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Question 7 (1 point)
An annuity pays $1500 at the beginning of every month for five years. The interest rate of the annuity is 4%. What is this annuity's future value?
Question 7 options:
$97,948 

$101,280 

$99,780 

$99,448 
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A five year annuity pays $1000 at the end of every month for four years. It has an interest rate of 3%. What is its present value?
Question 8 options:
$26,024 

$3,717 

$3,828 

$25,266 
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You purchase a two year annuity for $2800. The annuity pays $1500 each year. What is the annuity's approximate IRR?
Question 9 options:
2.3% 

4.5% 

8.6% 

10% 
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Which of the following correctly defines a method of determining a single period investment's yield?
Question 10 options:
Annual Percentage Rate = (1+(i/N))^N  1. 

The Effective Annual rate is the interest rate multiplied by the number of payment periods per year. 

Changeinvalue equals the investment's FV minus its PV. Divide that by PV and multiply by 100%. 

All of these answers. 
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You can purchase two threeyear annuities today. One is valued at $2000, the other at $4000. The 1st annuity begins paying $1000 in a year. The 2nd annuity begins paying $1500 in two years. The interest rate is 5%. What is the PV of the portfolio?
Question 11 options:
$808.12 

$6613.60 

$6808.12 

$613.60 
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You purchase two annuities. The first is for three years and pays $1500 annually. The second is for four years and pays $2000 annually. The interest rate for both is 4%. What is the Future Value of this portfolio?
Question 12 options:
$12,612.90 

$485.11 

$506.74 

$13,175.33 
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Which of the following is a cost to the investor that is included in the calculation of an investment's interest rate?
Question 13 options:
All of these answers. 

Inflation 

Risk of a bad investment. 

Opportunity Cost. 
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In a year, you expect to receive a payment of $1 million in a year. That annual interest rate is 5%. What is the present value of the future payment?
Question 14 options:
$952,381 

$1,050,000 

$995,025 

$666,667 
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Assume you invest money in a bond that will pay you $250,000 in four years. The bond has an annual interest rate of 5%. You do not receive interest payments while you own the bond; it is zerocoupon. What is the bond's present value?
Question 15 options:
$240,385 

$205,482 

$205,676 

$238,095 
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