ADMS3530-Midterm-S07 - Name Section ID # Professor Sam...

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Page 1 of 7 N a m e Section ID # Professor Sam Alagurajah’s Section A (Tues. 2-5 pm) Professor Sam Alagurajah’s Section D (Wed. 7-10 pm) Professor Lois King’s Section C (Wed. 4-7 pm) AK/ADMS 3530.03 Finance Midterm Exam Summer 2007 June 16, 2007 Type A Exam This exam consists of 30 multiple choice questions and carries a total of 100 points . Choose the response which best answers each question. Circle your answer below , and fill in your answers on the bubble sheet . Only the bubble sheet is used to determine your exam score . Please do not forget to write your name and ID # both at the top of this cover page and on the bubble sheet. Also please write the type of your exam (A or B) on the bubble sheet. Please note the following points : 1) Read the questions carefully and use your time efficiently . 2) Choose the answers that are closest to yours, because of possible rounding. 3) Keep at least 2 decimal places in your calculations and final answers, and at least 6 decimal places for the interest rate in Question 8. 4) The 20 “Numerical questions” are worth 4 points each. 5) The 10 “Conceptual questions” are worth 2 points each. 6) Unless otherwise stated, interest rates are annual , and bonds pay semi-annual coupons and have a face value (or par value) of $1,000 . 7) You may use the back of the exam paper as your scrap paper. Numerical questions # 1- 20 (4 points each) 1. How much will be in an account after 3 years if the initial deposit was $10, and which earned an APR of 10% compounded quarterly for the 3 years? A) $10.77 B) $13.31 C) $13.45 D) $31.38 2. If I promise to pay you $1,800 nine years from now in return for a loan of $1,000 today, what is the effective annual interest rate for this agreement? A) 5.26% B) 6.75% C) 9.00% D) 10.00%
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Page 2 of 7 3. In June 2007, the posted mortgage rate at CIBC was 6% for a 6-year term. What is the monthly interest rate? Use 6 decimal places in your calculations. (Remember that mortgages are compounded semi-annually) A) 0.4939% B) 0.5000% C) 0.5061% D) 6.0900% 4. How much can be accumulated for retirement if $1500 is deposited annually, beginning today, and the account earns 9% interest compounded annually for 40 years? A) $ 17,558. B) $506,824. C) $552,438. D) $802,876 5. What is the effective annual rate on a deposit of $5,000 made ten years ago if the deposit is worth $9,948.94 today? The deposit pays interest semi-annually. A)
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This note was uploaded on 04/11/2011 for the course ADMS 3530 taught by Professor Unknown during the Spring '09 term at York University.

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ADMS3530-Midterm-S07 - Name Section ID # Professor Sam...

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