TVM Game Questions and Answers

TVM Game Questions and Answers - BM301:TVMFaceOff QUESTIONS

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BM 301: TVM Face-Off QUESTIONS Q1.  Suppose you are 21 years old.  If you plan to retire at age 65, how much do you need to  save every month to have $3 million? (Assume you earn 9% annually) Q2.  What should you be willing to pay in order to receive $8,888 annually forever if you require  8% per year on the investment? Q3.  How much will you receive after 8 years if you invest $8,000 annually into a savings  account paying an annual interest rate of 8% (compounded quarterly)? Q4.  Your grandmother invested one lump sum 25 years ago at 6% interest.  Today, she gave you  the proceeds of that investment which totaled $76,543.  How much did your grandmother  originally invest? Q5.  Your grandfather invested one lump sum 18 years ago at 8% interest.  Today, he gave you  the proceeds of that investment which totaled $50,000.  How much did your grandfather  originally invest? Q6.  Your company has received a $100,000 loan from a finance company.  The annual  payments are $12,200.  If the company is paying 10% interest per year, how many loan  payments must the company make? Q7.  After graduation you plan to invest $250 per month in the stock market.  If you earn 9% per  year on your stocks, how much will you have accumulated when you retire in 38 years? Q8.  Suppose you are 25 years old.  If you plan to retire at age 65, how much do you need to  save every month to have $2.5 million? (Assume you earn 12% annually.) Q9.   If you borrow $250,000 at 5.75% annual fixed interest rate for 30 years in order to buy a  house, what will be your monthly house payment? Q10.  An amount of $1500 is deposited into a bank paying an annual interest rate of 4.3%,  compounded quarterly.  Find the balance in 6 years. Q11.  What should you be willing to pay in order to receive $12,000 annually forever if you  require 6% per year on the investment? Q12.  If you deposit $5,000 at the end of each year for 8 years at 7.5% per year, what is the FV? Q13.  How much will you receive after 10 years if you invest $12,000 annually into a savings  account paying an annual interest rate of 12% (compounded quarterly)? Q14.  What is the PV of an uneven cash flow with the following annual payment stream at 8%  annual interest: 0=5000; 1=2500; 2=0; 3=4000; 4=6000? 1 | P a g e
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Q15.  What is the PV of an uneven cash flow with the following annual payment stream at 7%  annual interest: 0=10,000; 1=5000; 2=10,000; 3=5000; 4=10,000? Q16.  An amount of $5000 is deposited into a bank paying an annual interest rate of 6%, 
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This note was uploaded on 11/16/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

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TVM Game Questions and Answers - BM301:TVMFaceOff QUESTIONS

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