Week03_TutorialQuestions

Week03_TutorialQuestions - SCHOOL OF BANKING AND FINANCE...

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FINS 1613 Tutorial Questions 1 SCHOOL OF BANKING AND FINANCE FINS1613 BUSINESS FINANCE Session 2, 2011 TUTORIAL QUESTIONS WEEK 3 - Introduction to Financial Mathematics Multiple-choice Questions 1. If you have \$200 today and invest it at 5% interest, how much will you have at the end of one year? a. \$205 b. \$210 c. \$220 d. \$250 e. None of these answers 2. If you have \$100 today and invest it at 7% interest for three years, how much will you have at the end? Assume the interest is compounded annually a. \$170.00 b. \$122.50 c. \$114.49 d. \$ 93.46 e. None of these answers 3. You have decided to invest \$200 for 4 years at a quoted annual rate of 5%. How much will your investment be worth at the end of this time if the compounding period is monthly? a. \$243.10 b. \$250.67 c. \$244.17 d. \$187.55 e. None of these answers 4. An investment has a present value of \$150 and in 6 years time it will be worth \$212.78. What is the interest rate on this investment? a. 4% b. 5% c. 6% d. 7% e. 8%

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FINS 1613 Tutorial Questions 2 5. An investment has a present value of \$225 and a future value of \$275.63. The interest rate is 7%. How many periods does the investment last?
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This note was uploaded on 10/20/2011 for the course COMMERCE 3502 taught by Professor All during the One '11 term at University of New South Wales.

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Week03_TutorialQuestions - SCHOOL OF BANKING AND FINANCE...

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