FINC 330 - Midterm Examination
64606945532467
PMT (non-annually)
Question 1 point
A commercial bank will loan you $46,523 for 8 years to buy a car. The loan must be
repaid in equal monthly payments at the end of the month. The annual interest rate on
the loan is 16.35 percent of the unpaid balance. What is the amount of the monthly
payments?
Round the answer to two decimal places.
Answer:
871.62
FV of a single amount non-
annually
Question 2 point
To what amount will the following investment accumulate?
$34,395, invested today for 40 years at 11.25 percent, compounded monthly.
Round the answer to two decimal places.
Answer:
3,031,910.93
FV ordinary
annuity
Question 3 point
What is the accumulated sum of the following stream of payments?
$2,741 every year at the end of the year for 11 years at 7.44 percent, compounded
annually.
Round the answer to two decimal places.
Answer:
44,284.9
8
1/1
Question 4
point
This study source was downloaded by 100000872281541 from CourseHero.com on 09-24-2023 13:15:48 GMT -05:00
https://www.coursehero.com/file/32979561/FINC-330-Midterm-Quiz-Submission-1docx/
, What is the present value of a $675 perpetuity discounted back to the present at 14.94
percent.
The answer should be calculated to two decimal places.
Answer:
4,518.07
FV of ordinary annuity non-
annually
Question 5 point
What is the future value in 26 years of an ordinary annuity cash flow of $1,879 every
quarter of a year at the end of the period, at an annual interest rate of 7.65 percent per
year, compounded quarterly?
Round the answer to two decimal places.
Answer:
606,413.37
PV of ordinary annuity non-
annually
Question 6 point
A car dealership offers you no money down on a new car. You may pay for the car for
4 years by equal monthly end-of-the-month payments of $485 each, with the first
payment to be made one month from today. If the discount annual rate is 11.92
percent compounded monthly, what is the present value of the car payments?
Round the answer to two decimal places.
Answer:
18,444.8
7
RRR
Question 7 point
Assume that the inflation rate during the last year was 1.58 percent. US government T-
bills had the nominal rates of return of 3.98 percent. What is the real rate of return for
a T-bill?
This study source was downloaded by 100000872281541 from CourseHero.com on 09-24-2023 13:15:48 GMT -05:00
https://www.coursehero.com/file/32979561/FINC-330-Midterm-Quiz-Submission-1docx/
64606945532467
PMT (non-annually)
Question 1 point
A commercial bank will loan you $46,523 for 8 years to buy a car. The loan must be
repaid in equal monthly payments at the end of the month. The annual interest rate on
the loan is 16.35 percent of the unpaid balance. What is the amount of the monthly
payments?
Round the answer to two decimal places.
Answer:
871.62
FV of a single amount non-
annually
Question 2 point
To what amount will the following investment accumulate?
$34,395, invested today for 40 years at 11.25 percent, compounded monthly.
Round the answer to two decimal places.
Answer:
3,031,910.93
FV ordinary
annuity
Question 3 point
What is the accumulated sum of the following stream of payments?
$2,741 every year at the end of the year for 11 years at 7.44 percent, compounded
annually.
Round the answer to two decimal places.
Answer:
44,284.9
8
1/1
Question 4
point
This study source was downloaded by 100000872281541 from CourseHero.com on 09-24-2023 13:15:48 GMT -05:00
https://www.coursehero.com/file/32979561/FINC-330-Midterm-Quiz-Submission-1docx/
, What is the present value of a $675 perpetuity discounted back to the present at 14.94
percent.
The answer should be calculated to two decimal places.
Answer:
4,518.07
FV of ordinary annuity non-
annually
Question 5 point
What is the future value in 26 years of an ordinary annuity cash flow of $1,879 every
quarter of a year at the end of the period, at an annual interest rate of 7.65 percent per
year, compounded quarterly?
Round the answer to two decimal places.
Answer:
606,413.37
PV of ordinary annuity non-
annually
Question 6 point
A car dealership offers you no money down on a new car. You may pay for the car for
4 years by equal monthly end-of-the-month payments of $485 each, with the first
payment to be made one month from today. If the discount annual rate is 11.92
percent compounded monthly, what is the present value of the car payments?
Round the answer to two decimal places.
Answer:
18,444.8
7
RRR
Question 7 point
Assume that the inflation rate during the last year was 1.58 percent. US government T-
bills had the nominal rates of return of 3.98 percent. What is the real rate of return for
a T-bill?
This study source was downloaded by 100000872281541 from CourseHero.com on 09-24-2023 13:15:48 GMT -05:00
https://www.coursehero.com/file/32979561/FINC-330-Midterm-Quiz-Submission-1docx/
