exam1c.ch1ch2ch5 - Name _ Webct User ID _ University of...

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Name __________________________________ Webct User ID __________________________________ University of Houston C. T. Bauer College of Business Finance 3332 Principles of Financial Management Fall, 2007 Exam 1C To receive full credit, show all work—equations in variable form, equations with numbers plugged in—and clearly indicate your answer. Financial functions may be used only for finding annuity factors, and all inputs must be shown. 1. How much would one pay for an investment which pays $10,000 per year for 16 years, beginning in 16 years, if the  opportunity cost is 11 percent? (10) 2. I borrowed $30,000 at a nominal annual rate of 9 percent for 6 years. How much will be my  monthly  payments? (8) 3. If I make the payments for the loan in #2 at the  beginning  of the month rather than at the end, how much will be  my monthly payments? (4) 4. If I save $14,000 per year for 16 years, how much would I have saved if my account earns 5 percent per year? (5) 5. What is the effective rate of interest for a nominal rate of 24 percent compounded quarterly? (5) 6. What is the value in six years of $4000 deposited in an account which earns 6 percent compounded  continuously (5) 7. What is the value of the following cash flow stream if the appropriate discount rate is 6 percent? (8) Year Cash Flow 1 $0 2  2000 3  1000
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8. GHA, Incorporated had taxable income of $150,000. (10)        Taxable Income($) Tax Calculation Up to 50,000 $0 + (15% Amount over $0) 50,001-75,000 $7500 + (25% Amount over $50,000) 75,001-100,000 $13,750 + (34% Amount over $75,000)
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This note was uploaded on 02/13/2011 for the course FINA 3332 taught by Professor Darlachisholm during the Spring '08 term at University of Houston.

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exam1c.ch1ch2ch5 - Name _ Webct User ID _ University of...

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