Exam 8: Mathematics of Finance: An Introduction to Basic Concepts and Calculations

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The present value of an ordinary annuity with equal monthly payments of $300 over the next four years,assuming market interest rates are 12% per annum,is:

(Multiple Choice)

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Question 61

If you invest $1200 for two years at 6.9% per annum simple interest,what is the value of your investment at the end of the two years?

(Multiple Choice)

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Question 62

When a company discounts a commercial bill to obtain funds,this means the company:

(Multiple Choice)

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Question 63

Distinguish between an ordinary annuity and an annuity due.Give examples.

(Essay)

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Question 64

If you receive $10 000 back as principal and interest at the end of two years for an initial investment of $9127 at the start of the term,what is the yield on your investment?

(Multiple Choice)

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Question 65

If the effective annual interest rate is known to be 16.0% on a debt that has monthly payments,what is the annual percentage rate?

(Multiple Choice)

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Question 66

What is the future value in six years of $10 000 invested today,compounding at 6.87% per annum?

(Multiple Choice)

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Question 67

The present value of an annuity of $800,received at the end of every month for 20 years,where the required rate of return is 6.5% per annum,compounded monthly,is:

(Multiple Choice)

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Question 68

A property investor receives rental payments of $1900 at the start of each month for five years.If the required rate of return is 7.2% per annum,compounded monthly,what is the value of the property investment today?

(Multiple Choice)

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Question 69

If your investment of $5000 with the bank carries a compound interest of 8.75% per annum,the value of your investment at the end of three years is:

(Multiple Choice)

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Question 70

When a company sells a commercial bill,this means the company:

(Multiple Choice)

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Question 71

If your deposit of $30 000 becomes $30 919 at the end of 120 days,what is the annual yield earned?

(Multiple Choice)

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Question 72

If the interest rate is 6.9% per annum,compounded annually,what is the future value of a five-year ordinary annuity with yearly payments of $4000?

(Multiple Choice)

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Question 73

Accumulation of final amounts under simple interest happens at a slower rate than with compounding interest.

(True/False)

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Question 74

What is the price today of an investment that will pay the single sum of $20 000 after three and a half years if the discount rate is 7.64% per annum,compounded annually?

(Multiple Choice)

4.9/5

(83)

Question 75

Showing 61 - 75 of 75

The present value of an ordinary annuity with equal monthly payments of $300 over the next four years,assuming market interest rates are 12% per annum,is:

If you invest $1200 for two years at 6.9% per annum simple interest,what is the value of your investment at the end of the two years?

When a company discounts a commercial bill to obtain funds,this means the company:

Distinguish between an ordinary annuity and an annuity due.Give examples.

If you receive $10 000 back as principal and interest at the end of two years for an initial investment of $9127 at the start of the term,what is the yield on your investment?

If the effective annual interest rate is known to be 16.0% on a debt that has monthly payments,what is the annual percentage rate?

What is the future value in six years of $10 000 invested today,compounding at 6.87% per annum?

The present value of an annuity of $800,received at the end of every month for 20 years,where the required rate of return is 6.5% per annum,compounded monthly,is:

A property investor receives rental payments of $1900 at the start of each month for five years.If the required rate of return is 7.2% per annum,compounded monthly,what is the value of the property investment today?

If your investment of $5000 with the bank carries a compound interest of 8.75% per annum,the value of your investment at the end of three years is:

When a company sells a commercial bill,this means the company:

If your deposit of $30 000 becomes $30 919 at the end of 120 days,what is the annual yield earned?

If the interest rate is 6.9% per annum,compounded annually,what is the future value of a five-year ordinary annuity with yearly payments of $4000?

Accumulation of final amounts under simple interest happens at a slower rate than with compounding interest.

What is the price today of an investment that will pay the single sum of $20 000 after three and a half years if the discount rate is 7.64% per annum,compounded annually?

A Modern Financial System: An Overview

Commercial Banks

Non-Bank Financial Institutions

The Share Market and the Corporation

Corporations Issuing Equity in the Share Market

Investors in the Share Market

Forecasting Share Price Movements

Short-Term Debt

Medium-To-Long-Term Debt

International Debt Markets

Government Debt, monetary Policy and the Payments System

An Introduction to Interest Rate Determination and Forecasting

Interest Rate Risk

Foreign Exchange: The Structure and Operation of the Fx Market

Foreign Exchange: Factors That Influence the Exchange Rate

Foreign Exchange: Risk Identification and Management

An Introduction to Risk Management and Derivatives

Future Contracts and Forward Rate Agreements

Options

Interest Rate Swaps, Cross-Currency Swaps and Credit Default

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