FC05
Test Form C
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FinCoach Test – Finance 320
Open Notes – Closed Book – Choose Closest Answer
Student Must Return This Examination In Order to Receive Credit
Master Copy
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