(Professor Alagurajah’s Sections O (Wednesdays, 7-10 pm) and S (Thursdays,
7-10 pm), Professor Ho’s Section T (Tuesdays, 2:30-5:30 pm), Professor King’s
Section P (Internet), Professor Li’s Sections M (Thursdays, 2:30-5:30 pm) and N
(Tuesdays, 7-10 pm), Professor Tissenbaum’s Section Q (Mondays, 7-10 pm),
and Professor Yildirim’s Section R (Mondays, 4-7 pm).)
AK/ADMS 3530.03 Finance Final Exam
April 10, 2008
Type A Exam - Part I
IMPORTANT: The exam consists of TWO parts (I and II). This is only the
Part I. Part II will be distributed later during the exam. Please use the
bubble sheet for both parts.
This part consists of
25 multiple choice questions
, 2 points each for a total of
. Choose the response which best answers each question.
and fill in your answers on the bubble sheet
Only the bubble
sheet is used to determine your exam score
forget to write
your name and ID # 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. Be sure to
blacken the bubbles corresponding to your student number.
Please note the following points
Read the questions carefully and use your time efficiently
2) Choose the answers that are
to yours, because of possible
3) Keep at least
decimal places in your calculations and final answers,
and at least
decimal places for interest rates.
4) Unless otherwise stated, interest rates are
, and bonds have a
face value (or par value) of
and pay coupons
5) You may use the back of the exam paper as your scrap paper.
16 numerical questions (2 points each)
1. You’re a recent Atkinson graduate and make the following acquisitions this
New car of $28,320.
New wardrobe of $3,248.
You also have a new job
that pays you $42,000 after taxes this year and $46,000 after taxes next year.
Your annual living expenses are $34,000.
You plan to get a loan to make up for
the difference between your current income and current consumption.
offers you a loan at a rate of 14% annually and you intend to pay off this loan in
one year from today.
How much will you have left to spend next year?