FIN 701/MBA 702 FALL STUDY GUIDE
WITH ALL ACTUAL ANSWERS 2026/2027
UPDATED.
1. If you deposit $10,000 today into your bank account, what would the account balance be in 4
years if the account carries an interest rate of 3%? - Answer 11,255.09
If you want to have $1,000,000 in your bank account in 20 years, how much do you have to
deposit into the account today if the account carries an interest rate of 5%? - Answer
376,889.48
What is the future value of the following annuity payments: $10,000 per year for 25 years at 3%
interest rate? - Answer 364,592.64
What is the future value of the following annuity payments: $1,000 every 3 months for 3 years
at an interest rate of 5%, compounded quarterly? - Answer 12,860.36
What is the present value of the following annuity payments: $5,000 every 6 months for 10
years at an interest rate of 5%, compounded semiannually? - Answer 77,945.81
How much money must be invested today earning a 3% interest rate compounded annually to
have $100,000 in 4 years? - Answer -88,848.70
How much must you deposit today in a bank account paying interest compounded quarterly if
you wish to have $100,000 at the end of 3 months? The bank pays annual rate of 5%. - Answer
-98,765.43
What annual rate of interest is the bank charging if you borrow $96,386 and must repay
$100,000 at the end of 2 quarters if interest is compounded quarterly? - Answer 7.44%
You borrowed $95,136 and must repay $100,000 in exactly 3 years from today. Interest is
compounded annually. What is the annual interest rate of the loan? - Answer 1.68%
What is the present value of a stream of $5,000 semiannual payments received at the end of
each period for the next 5 years? The annual interest rate is 3%. - Answer -46,110.92
If you deposit $25,000 today into your bank account, what would the account balance be in 10
years if the account carries an interest rate of 5%? - Answer 40,722.37
WITH ALL ACTUAL ANSWERS 2026/2027
UPDATED.
1. If you deposit $10,000 today into your bank account, what would the account balance be in 4
years if the account carries an interest rate of 3%? - Answer 11,255.09
If you want to have $1,000,000 in your bank account in 20 years, how much do you have to
deposit into the account today if the account carries an interest rate of 5%? - Answer
376,889.48
What is the future value of the following annuity payments: $10,000 per year for 25 years at 3%
interest rate? - Answer 364,592.64
What is the future value of the following annuity payments: $1,000 every 3 months for 3 years
at an interest rate of 5%, compounded quarterly? - Answer 12,860.36
What is the present value of the following annuity payments: $5,000 every 6 months for 10
years at an interest rate of 5%, compounded semiannually? - Answer 77,945.81
How much money must be invested today earning a 3% interest rate compounded annually to
have $100,000 in 4 years? - Answer -88,848.70
How much must you deposit today in a bank account paying interest compounded quarterly if
you wish to have $100,000 at the end of 3 months? The bank pays annual rate of 5%. - Answer
-98,765.43
What annual rate of interest is the bank charging if you borrow $96,386 and must repay
$100,000 at the end of 2 quarters if interest is compounded quarterly? - Answer 7.44%
You borrowed $95,136 and must repay $100,000 in exactly 3 years from today. Interest is
compounded annually. What is the annual interest rate of the loan? - Answer 1.68%
What is the present value of a stream of $5,000 semiannual payments received at the end of
each period for the next 5 years? The annual interest rate is 3%. - Answer -46,110.92
If you deposit $25,000 today into your bank account, what would the account balance be in 10
years if the account carries an interest rate of 5%? - Answer 40,722.37
