10/4/23, 11:44 AM Pre-lecture Quiz 3 (for Session 4 - Chapter 4): Corporate Finance-T323WSB-7

Pre-lecture Quiz 3 (for Session 4 - Chapter 4)

Due Oct 5 at 8:15am Points 10 Questions 10
Available Oct 4 at 12am - Oct 5 at 8:15am Time Limit 30 Minutes

Attempt History
Attempt Time Score
LATEST Attempt 1 9 minutes 9 out of 10

 Correct answers are hidden.

Score for this quiz: 9 out of 10

Submitted Oct 4 at 11:43am
This attempt took 9 minutes.

Question 1 1 / 1 pts

The actual interest rate on a loan that is compounded monthly but

expressed as an annual rate is referred to as the _____ rate.

stated

discounted annual

effective annual

periodic monthly

consolidated monthly

Question 2 1 / 1 pts

https://lms.westernsydney.edu.vn/courses/1110/quizzes/14999 1/6
10/4/23, 11:44 AM Pre-lecture Quiz 3 (for Session 4 - Chapter 4): Corporate Finance-T323WSB-7

A consol is best categorized as a(n):

ordinary annuity.

amortized cash flow.

annuity due.

discounted loan.

perpetuity.

Question 3 1 / 1 pts

An ordinary annuity is best defined as:

increasing payments paid for a definitive period of time.

increasing payments paid forever.

equal payments paid at the end of regular intervals over a stated time period.

equal payments paid at the beginning of regular intervals for a limited time
period.

equal payments that occur at set intervals for an unlimited period of time.

Question 4 1 / 1 pts

The process of determining the present value of future cash flows in order to
know their value today is referred to as:

https://lms.westernsydney.edu.vn/courses/1110/quizzes/14999 2/6
10/4/23, 11:44 AM Pre-lecture Quiz 3 (for Session 4 - Chapter 4): Corporate Finance-T323WSB-7

compound interest valuation.

interest on interest valuation.

discounted cash flow valuation.

future value interest factoring.

complex factoring.

Question 5 1 / 1 pts

Tyler won a lottery and will receive $1,000 each year for the next 30 years.
The current value of these winnings is called the:

single amount.

future value.

present value.

simple amount.

compounded value.

Question 6 1 / 1 pts

Jared invested $100 two years ago at 8 percent interest. The first year, he
earned $8 interest on his $100 investment. He reinvested the $8. The
second year, he earned $8.64 interest on his $108 investment. The extra
$.64 he earned in interest the second year is referred to as:

free interest.

https://lms.westernsydney.edu.vn/courses/1110/quizzes/14999 3/6
10/4/23, 11:44 AM Pre-lecture Quiz 3 (for Session 4 - Chapter 4): Corporate Finance-T323WSB-7

bonus income.

simple interest.

interest on interest.

present value interest.

Incorrect
Question 7 0 / 1 pts

Which one of the following actions will increase the present value of an
amount to be received sometime in the future?

Increase in the time until the amount is received

Increase in the discount rate

Decrease in the future value

Decrease in the interest rate

Decrease in both the future value and the number of time periods

Question 8 1 / 1 pts

Which one of the following variables is the exponent in the present value
formula?

Present value

Future value

Interest rate

Number of time periods

https://lms.westernsydney.edu.vn/courses/1110/quizzes/14999 4/6
10/4/23, 11:44 AM Pre-lecture Quiz 3 (for Session 4 - Chapter 4): Corporate Finance-T323WSB-7

There is no exponent in the present value formula.

Question 9 1 / 1 pts

Lisa is calculating the present value of a bonus she will receive next year.
The process she is using is called:

growth analysis.

discounting.

accumulating.

compounding.

reducing.

Question 10 1 / 1 pts

Assume you are investing $100 today in a savings account. Which one of
the following terms refers to the total value of this investment one year from
now?

Future value

Present value

Principal amount

Discounted value

Invested principal

https://lms.westernsydney.edu.vn/courses/1110/quizzes/14999 5/6
10/4/23, 11:44 AM Pre-lecture Quiz 3 (for Session 4 - Chapter 4): Corporate Finance-T323WSB-7

Quiz Score: 9 out of 10

https://lms.westernsydney.edu.vn/courses/1110/quizzes/14999 6/6