©THEBRIGHTSTARS 2024
Introductory Financial Management – Uiowa
Exam Questions With Correct
Revised Answers
If you invest $5000 in a 2-year CD and the CD has a return of 4% per year, how much is your
investment worth at the end of two years? - answer✔✔N = 2
PV = 5,000
I = 4%
PMT = 0
PV = ?
5408
How many years would it take to double your money, if you could invest it at 2% per year -
answer✔✔9
Rule of 72: (72/8%) = 9
What price would you be willing to pay for an investment that delivers $1000 in 3 years if your
required return is 6% per year? - answer✔✔Basically, what is the present value:
N=3
I = 6%
PMT = 0
FV = $1000
PV?
Introductory Financial Management – Uiowa
Exam Questions With Correct
Revised Answers
If you invest $5000 in a 2-year CD and the CD has a return of 4% per year, how much is your
investment worth at the end of two years? - answer✔✔N = 2
PV = 5,000
I = 4%
PMT = 0
PV = ?
5408
How many years would it take to double your money, if you could invest it at 2% per year -
answer✔✔9
Rule of 72: (72/8%) = 9
What price would you be willing to pay for an investment that delivers $1000 in 3 years if your
required return is 6% per year? - answer✔✔Basically, what is the present value:
N=3
I = 6%
PMT = 0
FV = $1000
PV?
