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Quiz
Quiz
Quiz
Financial Management
Air University, Multan Campus
Name: ---------------------
Semester: ----------------
$32,000.
$39,272.
$40,000.
$80,000.
2. In 3 years you are to receive $5,000. If the interest rate were to suddenly increase, the present value of
that future amount to you would
a)
b)
c)
d)
fall.
rise.
remain unchanged.
cannot be determined without more information.
3. Assume that the interest rate is greater than zero. Which of the following cash-inflow streams should
you prefer?
Year1
a)
b)
c)
d)
Year2
Year3
Year4
$400
$300 $200
$100
$100
$200 $300
$400
$250
$250 $250
$250
Any of the above, since they each sum to $1,000.
upward.
downward.
True.
Fred.
5. For $1,000 you can purchase a 5-year ordinary annuity that will pay you a yearly payment of $263.80
for 5 years. The compound annual interest rate implied by this arrangement is closest to
a)
b)
c)
d)
8 percent.
9 percent.
10 percent.
11 percent.
6. (1 + i)n = ?
a)
b)
c)
d)
PVIF
FVIF
PVIFA
FVIFA
7. In a typical loan amortization schedule, the dollar amount of interest paid each period
8. In a typical loan amortization schedule, the total dollar amount of money paid each period