BFIN final - Questions with Correct Verified
Answers
Celesta Frank wants to go on a cruise in three years. She could earn 8 percent compounded
daily in an account if she deposits the money today. She needs to have $10,000 in three
years. How much will she have to deposit today? (Round to the nearest dollar.)
$6,432
$7,866
$7,763
$7,826
$7,866
Your tuition for the coming year is due today. You borrow $8,000 from your uncle and
agree to repay in the three years an amount of $9,250. What is the interest rate on this
loan? Round to the nearest percent.
5%
8%
6%
7%
5%
Winston Baker will invest $25,000 in a spa that his sister is starting. He will triple his
investment in six years. What is the rate of return that Winston is being promised?
(Rounded to the nearest percent.)
25%
,20%
18%
12%
20%
Your uncle is looking to double his investment of $10,000. He claims he can get earn 14
percent on his investment. How long will it take to double his investment? Use the Rule of
72 and round to the nearest year.
14 years
10 years
7 years
5 years
5 years
Transent Foods announced that its current sales is $1,233,450 this year. The company
forecasts a growth rate of 16 percent for the foreseeable future. How long will it take the
firm to produce earnings of $3 million? (Round off to the nearest year.)
8 years
7 years
6 years
10 years
6 years
Amanda Sorenson is planning her retirement. She is presently investing in a 401(k) but
needs an additional $500,000 to reach her retirement goal. As luck would have it, Amanda
, just won a brand new car that is worth $36,000 in a raffle.If Amanda were to sell the car
and invest the $36,000 proceeds at a rate of 6.50%, compounded annually, how long will it
be before Amanda has the additional funds she needs to reach her goal? (Round off to the
nearest 1/10 of a year)
52.2 years
41.8 years
36.6 years
24.0 years
41.8 years
Omniva Inc. just generated earnings per share of $3.75 for the fiscal year ending
September 30, 2014. The firm is expected to achieve earnings per share of $8.76 in 5-years.
At what rate will Omniva Inc.'s earnings per share be growing over this 5-year period?
(Round off to the nearest 1/10 percent)
13.4%
18.5%
15.7%
21.3%
18.5%
What's the future value of $1,500 after 5 years if the annual return is 6%, compounded
quarterly?
$2,020
$1,819
Answers
Celesta Frank wants to go on a cruise in three years. She could earn 8 percent compounded
daily in an account if she deposits the money today. She needs to have $10,000 in three
years. How much will she have to deposit today? (Round to the nearest dollar.)
$6,432
$7,866
$7,763
$7,826
$7,866
Your tuition for the coming year is due today. You borrow $8,000 from your uncle and
agree to repay in the three years an amount of $9,250. What is the interest rate on this
loan? Round to the nearest percent.
5%
8%
6%
7%
5%
Winston Baker will invest $25,000 in a spa that his sister is starting. He will triple his
investment in six years. What is the rate of return that Winston is being promised?
(Rounded to the nearest percent.)
25%
,20%
18%
12%
20%
Your uncle is looking to double his investment of $10,000. He claims he can get earn 14
percent on his investment. How long will it take to double his investment? Use the Rule of
72 and round to the nearest year.
14 years
10 years
7 years
5 years
5 years
Transent Foods announced that its current sales is $1,233,450 this year. The company
forecasts a growth rate of 16 percent for the foreseeable future. How long will it take the
firm to produce earnings of $3 million? (Round off to the nearest year.)
8 years
7 years
6 years
10 years
6 years
Amanda Sorenson is planning her retirement. She is presently investing in a 401(k) but
needs an additional $500,000 to reach her retirement goal. As luck would have it, Amanda
, just won a brand new car that is worth $36,000 in a raffle.If Amanda were to sell the car
and invest the $36,000 proceeds at a rate of 6.50%, compounded annually, how long will it
be before Amanda has the additional funds she needs to reach her goal? (Round off to the
nearest 1/10 of a year)
52.2 years
41.8 years
36.6 years
24.0 years
41.8 years
Omniva Inc. just generated earnings per share of $3.75 for the fiscal year ending
September 30, 2014. The firm is expected to achieve earnings per share of $8.76 in 5-years.
At what rate will Omniva Inc.'s earnings per share be growing over this 5-year period?
(Round off to the nearest 1/10 percent)
13.4%
18.5%
15.7%
21.3%
18.5%
What's the future value of $1,500 after 5 years if the annual return is 6%, compounded
quarterly?
$2,020
$1,819
