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FinCoach Sample Test.rtf
Test Form C
Sample Test
FinCoach Test – Finance 320
Open Notes – Closed Book – Choose Closest Answer
Student Must Return this Examination In Order to Receive Credit
1.
Calculate the future value of $1,660 invested at 7.3% for four years.
a.
2,420
b.
1,540
c.
2,200
d.
1,760
2.
Compute the future value of $570 if the appropriate rate is 13.0% if interest is compounded every
month and you invest the money for one year.
a.
649
b.
584
c.
778
d.
843
3.
If an investment at rate 9.6% pays you $1,393 after two years, what is its present value?
a.
1,508
b.
1,044
c.
1,160
d.
1,392
4.
If an investment at an annual rate of 13.6% compounded every month pays you $2,431 after three
years, what is its present value?
a.
1,134
b.
2,106
c.
1,782
d.
1,620
5.
Glen Allaway proposes to invest $1,300 today and expects to accumulate $1,539 in two years.
What is the underlying rate of return on the investment?
a.
10.6%
b.
11.4%
c.
9.7%
d.
8.8%
6.
If the discount rate is 11.2%, find the future value of $10,440 invested every year for 20 years with
the first payment made one year from now.
a.
548,687
b.
480,101
c.
617,273
d.
685,859
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