GEB 3006 UCF Final Exam Final UPDATED
Questions and CORRECT Answers
True or False
A recent study shows that increases in federal regulation have a negative impact on economic
growth. - ✔✔True
Which Florida sector is expected to have the highest average annual growth rate from 2018-
2021? - ✔✔Professional and business services
Which of the following is NOT an attribute of the recent changes in tax laws?
1. A reduction in corporate tax rates from 35% to 21%
2. An increase in the standard deduction for individuals
3. Incentives for corporations to leave cash in foreign subsidiaries
4. Immediate expensing for small businesses - ✔✔Incentives for corporations to leave cash in
foreign subsidiaries
Average Florida home prices in 2018 compared to the peak in 2007 are: - ✔✔Higher
Which of the following Florida cities is forecasted to have the highest growth rate in population
and employment? - ✔✔Orlando
Which of the following describes the current Florida housing market? - ✔✔Sellers market, with
tighter credit standards compared to 2007.
,True or False
The US debt to GDP ratio is now over 100%, and a potential future issue for the country. -
✔✔True
Currently, the US has about $22 trillion in debt outstanding. Who holds most of the debt? -
✔✔Most of the debt is held by US citizens and the US government
What is the future value of $1,800 invested today at 18% interest in 30 years with interest
compounded quarterly?
$9.15
$354,182.71
$394,832.66
$300,154.84
$258,067.15 - ✔✔$354,182.71
What is the present value of $13,500 received 5 years from now using a 16% interest or
discount rate, with interest compounded daily?
$6,067.00
$6,223.44
$6,161.22
$5,230.18
$30,039.54 - ✔✔$6,067.00
What is the future value of $27,000 deposited at the end of each year for 6 years earning 12%
interest with interest compounded annually?
$219,110.10
, $291,290.81
$245,403.32
$111,008.00
$192,816.89 - ✔✔$219,110.10
What is the present value of $1,500 deposited at the beginning of each quarter year for 14
years earning 7.5% interest?
$149,145.20
$48,748.83
$52,701.44
$18,663.66
$51,731.47 - ✔✔$52,701.44
What is the monthly car payment on a 5 year $17,500 car loan at 5% annual interest?
$319.03
$330.25
$4,042.06
$3,849.58
$328.88 - ✔✔$330.25
Assume the following information for a car note:
Original loan amount = $27,500 Annual interest rate = 7.8% Term of loan = 36 months
How much principal and interest was paid in the first year, and what is the principal balance on
the loan after year one?
$7,670.13 of principal; $1,720.20 of interest; balance due $19,829.87
$8,518.93 of principal; $1,791.65 of interest; balance due $18,300.60
Questions and CORRECT Answers
True or False
A recent study shows that increases in federal regulation have a negative impact on economic
growth. - ✔✔True
Which Florida sector is expected to have the highest average annual growth rate from 2018-
2021? - ✔✔Professional and business services
Which of the following is NOT an attribute of the recent changes in tax laws?
1. A reduction in corporate tax rates from 35% to 21%
2. An increase in the standard deduction for individuals
3. Incentives for corporations to leave cash in foreign subsidiaries
4. Immediate expensing for small businesses - ✔✔Incentives for corporations to leave cash in
foreign subsidiaries
Average Florida home prices in 2018 compared to the peak in 2007 are: - ✔✔Higher
Which of the following Florida cities is forecasted to have the highest growth rate in population
and employment? - ✔✔Orlando
Which of the following describes the current Florida housing market? - ✔✔Sellers market, with
tighter credit standards compared to 2007.
,True or False
The US debt to GDP ratio is now over 100%, and a potential future issue for the country. -
✔✔True
Currently, the US has about $22 trillion in debt outstanding. Who holds most of the debt? -
✔✔Most of the debt is held by US citizens and the US government
What is the future value of $1,800 invested today at 18% interest in 30 years with interest
compounded quarterly?
$9.15
$354,182.71
$394,832.66
$300,154.84
$258,067.15 - ✔✔$354,182.71
What is the present value of $13,500 received 5 years from now using a 16% interest or
discount rate, with interest compounded daily?
$6,067.00
$6,223.44
$6,161.22
$5,230.18
$30,039.54 - ✔✔$6,067.00
What is the future value of $27,000 deposited at the end of each year for 6 years earning 12%
interest with interest compounded annually?
$219,110.10
, $291,290.81
$245,403.32
$111,008.00
$192,816.89 - ✔✔$219,110.10
What is the present value of $1,500 deposited at the beginning of each quarter year for 14
years earning 7.5% interest?
$149,145.20
$48,748.83
$52,701.44
$18,663.66
$51,731.47 - ✔✔$52,701.44
What is the monthly car payment on a 5 year $17,500 car loan at 5% annual interest?
$319.03
$330.25
$4,042.06
$3,849.58
$328.88 - ✔✔$330.25
Assume the following information for a car note:
Original loan amount = $27,500 Annual interest rate = 7.8% Term of loan = 36 months
How much principal and interest was paid in the first year, and what is the principal balance on
the loan after year one?
$7,670.13 of principal; $1,720.20 of interest; balance due $19,829.87
$8,518.93 of principal; $1,791.65 of interest; balance due $18,300.60
