Midterm 08 09 - Name: UGBA 103 Midterm Exam Section: Please...

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N a m e : S e c t i o n : Page 1 of 7 UGBA 103 Midterm Exam Please remember to write your name legibly on every page . This exam will be graded out of 100 points. There is an extra credit question so the total attainable number of points is 110. The number in parentheses after each question is the amount of points each question counts. The exam consists of 5 questions and 7 pages. You may use a calculator on this exam. You may NOT use any other calculation device including a computer. You cannot bring any written material into this exam. Some questions may contain irrelevant information! Good Luck! 1 2 3 4 5 Total
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N a m e : S e c t i o n : Page 2 of 7 Question 1: NPV a) Would you rather receive $10,000 today, or $12,000 in 5 years if the EAR is 2.5%? (5 points) b) You obtain your first job offer and the employer offers you a loan of $2600 to be repaid with 26 equal bi-weekly payments of $100. Should you accept this offer even if you do not know the current borrowing or lending rates? (5 points)
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N a m e : S e c t i o n : Page 3 of 7 Question 2: Interest Rates
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This note was uploaded on 11/17/2010 for the course UGBA 103 taught by Professor Berk during the Fall '07 term at University of California, Berkeley.

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Midterm 08 09 - Name: UGBA 103 Midterm Exam Section: Please...

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