Stack #4090700
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| Which of the following processes can be used to calculate future value for multiple cash flows? | show 🗑
|
||||
| show | calculate the present value of each cash flow then add the discounted values together
🗑
|
||||
| show | end
🗑
|
||||
| The formula for the ______ value interest factor of an annuity is {1–[1/(1+r)t]r} . | show 🗑
|
||||
| A typical investment has a large cash (inflow/outflow) at the beginning and then a cash (inflows/outflows) for many years. | show 🗑
|
||||
| One method of calculating future values for multiple cash flows is to compound the accumulated balance forward _____ at a time. | show 🗑
|
||||
| show | calculate the future value of each cash flow then add the compounded values together.
🗑
|
||||
| In the standard present and future value tables, and in all the default settings on a financial calculator, the assumption is that cash flows occur at the (beginning/end) of each period. | show 🗑
|
||||
| show | [1 − (1/1.1030)]/.10]
🗑
|
||||
| show | TRUE
🗑
|
||||
| show | Annual
🗑
|
||||
| show | multiple
🗑
|
||||
| Which of the following are annuities? | show 🗑
|
||||
| Ralph has $1,000 in an account that pays 10 percent per year. Ralph wants to give this money to his favorite charity by making three equal donations at the end of the next 3 years. How much will Ralph give to the charity each year? | show 🗑
|
||||
| The present value interest factor for an annuity with an interest rate of 8 percent per year over 20 years is ____. | show 🗑
|
||||
| How frequently does continuous compounding occur? | show 🗑
|
||||
| show | $100{[1 − (1/(1.10)3)]/0.10}
🗑
|
||||
| show | Mortgages
Pensions
🗑
|
||||
| When using the spreadsheet (Excel) function for finding the PV of an annuity, it's a good idea to enter the ______ as a negative value. | show 🗑
|
||||
| Which of the following is the formula for the future value of an annuity? | show 🗑
|
||||
| The present value of a(n) of C dollars per period for t periods when the rate of return or interest rate, r, is given by: C × (1 − [1/(1 + r)t]r/) | show 🗑
|
||||
| show | at the beginning of each period
🗑
|
||||
| show | $100{[1 - (1/(1.10)20)]/0.10}
🗑
|
||||
| show | infinite
🗑
|
||||
| show | =PV(.10,10,-100,0,)
🗑
|
||||
| The future value factor for a(n) ______ is found by taking the future value factor and subtracting one, then dividing this number by the interest rate. | show 🗑
|
||||
| show | The cash flows grow for a finite period.
The cash flows grow at a constant rate.
🗑
|
||||
| show | Cash flows from a product whose sales are expected to remain constant forever
A consol (bond that pays interest only and does not mature)
Preferred stock
🗑
|
||||
| Because of __________ and _________, interest rates are often quoted in many different ways | show 🗑
|
||||
| An effective annual rate of 7.12 percent is equal to 7 percent compounded ______. | show 🗑
|
||||
| The Blank 1 percentage rate is the interest rate charged per period multiplied by the number of periods in a year. | show 🗑
|
||||
| show | stated
🗑
|
||||
| Which of the following is the simplest form of loan? | show 🗑
|
||||
| show | 12%, compounded semiannually
🗑
|
||||
| show | The interest rate per period multiplied by the number of periods in the year.
🗑
|
||||
| EAR | show 🗑
|
||||
| The original loan amount is called the _____. | show 🗑
|
||||
| show | principal
🗑
|
||||
| You will receive a bonus of $5,000 in one year's time, and would like to take a loan against it now. What is the formula that shows how much you can borrow if you plan to use the entire amount to pay back the loan and your interest rate is 3%? | show 🗑
|
||||
| show | repaid at some point in the future
🗑
|
||||
| show | Pay principal and interest every period in a fixed payment.
Pay the interest each period plus some fixed amount of the principal.
🗑
|
||||
| show | Reason: For annual compounding, the EAR is equal to the APR. For 12% compounded semiannually,
EAR = (1 + 0.12/2)2 -1 = 12.36%
🗑
|
||||
| show | principal
🗑
|
||||
| show | The monthly payment is based on a longer amortization period than the maturity of the loan.
The amortization period is longer than the loan period.The borrower makes a large balloon payment at the end of the loan period.
The monthly payments do not full
🗑
|
||||
| show | PARTIAL
🗑
|
||||
| The most common way to repay a loan is to pay: | show 🗑
|
||||
| show | 2 to 30
🗑
|
||||
| Which of the following are true about the amortization of a fixed payment loan? | show 🗑
|
||||
| Compared to a comparable fixed payment loan, the total interest on a fixed principal loan is | show 🗑
|
||||
| show | partial
🗑
|
||||
| The loan balance on partial amortization loans declines so slowly because the ___ | show 🗑
|
||||
| When the term structure of interest rates is downward sloping, ___ | show 🗑
|
||||
| The U.S. government borrows money by issuing: | show 🗑
|
||||
| Payments in a partial amortization loan are based on the amortization period, not the loan period. The remaining balance is then: | show 🗑
|
||||
| show | Upward sloping
Downward sloping
Humped
🗑
|
||||
| show | The monthly payments do not fully pay off the loan by the end of the loan period.
The borrower makes a large balloon payment at the end of the loan period.
🗑
|
||||
| Which of the following are true about a partial amortization loan? | show 🗑
|
||||
| show | long-term rates are higher than short-term rates
🗑
|
||||
| show | partial
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
agordon93