Question 1:
Score 0/1
Your response
Correct response
Calculating Rates of Return
In 2005, a gold $3 coin minted in 1881 was auctioned for $9,500. For this to have been true, the annual increase in
the value of the coin was
(0%) percent.
(Input answer as a percent rounded to 2 decimal places,
without the percent sign.)
Calculating Rates of Return
In 2005, a gold $3 coin minted in 1881 was auctioned for $9,500. For this to have been true, the annua
the value of the coin was
6.72 with a tolerance of ± 1.0%
percent.
(Input answer as
rounded to 2 decimal places, without the percent sign.)
Total grade:
0.0×1/1 = 0%
Feedback:
To answer this question, we can use either the FV or the PV formula. Both will give the same answer since they
are the inverse of each other. We will use the FV formula, that is:
FV = PV(1 +
r
)
t
Solving for
r
, we get:
r
= (FV / PV)
1 /
t
– 1
r
= ($9,500 / $3)
1/124
– 1
r
= 0.0672 or 6.72%
Question 2:
Score 0/1
Your response
Correct response
Calculating Future Values
You have $8,300 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent per
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 Spring '07
 ANDELIN,STEVENLE
 Corporate Finance, Net Present Value, decimal places, Regency Bank

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