3100-PracticeExam1 - NAME: _ FIN 3100 Practice Exam 1 Dr....

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NAME: _____________________________ FIN 3100 Practice Exam 1 Dr. Lucy Ackert You may use a calculator and formula sheet. You must turn your formula sheet in with your exam. No other materials are permitted. Part 1: Multiple Choice (4 points each). Please circle only one answer or all will be counted incorrect. 1. John invested $20,000 fifteen years ago with an insurance company that has paid him 8 percent (APR), compounded quarterly (every 3 months). How much interest did John earn over the 15 years? a. $2,416.08 b. $45,620.62 c. $24,000.00 d. $28,318.95 e. $65,620.62 2. You are running short of cash and really need to pay your tuition. A friend suggests that you check out the local title pawn shop. At the shop they offer to loan you $5,000 if you pay them back $6,000 in one month. It seems like a good idea to you because you don’t want to sell your car and you are sure you will be able to pay the money back in a month. What is the APR on this loan? a. 83.33% b. 240% c. 360% d. 20% e. none of the above. 3. The financial statement that summarizes a firm's operations over a period of time is called a(n) a. income statement. b. cash flow statement. c. production report. d. balance sheet. e. periodic operating statement
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4. You want to buy a new sports car for $50,000. The contract is in the form of a 60- month annuity due at a 7.2 APR . What will your monthly payment be? a. $344.90 b. $988.85 c. $994.78 d. $1,192.74 e. $1,286.80 5. In the large corporation the separation of management and ownership provides the following advantage(s) a. a separate legal entity has unlimited life.
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This note was uploaded on 04/06/2011 for the course ACCT 4050 taught by Professor Rodney during the Spring '11 term at University of Georgia Athens.

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3100-PracticeExam1 - NAME: _ FIN 3100 Practice Exam 1 Dr....

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