FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
When we consider the time value of money, a dollar received in the future:
a. is worth less than a dollar received today
b. is worth more than a dollar received today
c. is worth the same as a dollar received today
d. depends on the cimpounding used to determine the relationship to a dollar
received today - correct answer a. is worth less than a dollar received today
As a gift from your parents, you just received $50,000 for your education for the next
four years. You can earn an annual rate of 8% on your investments. How much can
you withdraw each year (end of year) just using up the $50,000?
a. $12,500
b. $11,096
c. $11,750
d. $15,096 - correct answer b. $11,096
You would like to have $500,000 put away in 20 years for your retirement. You plant
to put away $14,000 each year (end of year). What is the minimum interest rate that
you would need to receive $500,000.
a. 6.5%
, FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
b. 5.72%
c. 5%
d. 4.5% - correct answer b. 5.72%
A gallon of milk cost $3.59 today. How much will it cost you to buy a gallon of milk
for your gradnchildren in 35 years if infation averages 5% per year?
a. $3.77
b. $6.28
c. $12.34
d. $19.80 - correct answer d. $19.80
Your grandmother is offered a series of $6,000 starting one year from today. The
payments will be made at the end of each year of the next 10 years. Similar risk
investments are yielding 7%. What should she pay for the investment?
a. $60,000
b. $45,091
c. $42,141
d. $30,501 - correct answer c. $42,141
The Dallas Development Corporation is considering the purchase of an apartment
project for $100,000. They estimate that they will receive $15,000 at the end of each
, FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
year for the next 10 years. At the end of the 10th year, the apartment project will be
worth nothing. If the company insists on a 9 percent return comounded annually on
its investment, is this a good investment?
a. no you pay more than its worth
b. yes, it's worth more than you pay
c. its worth the same either way
d. depends on the compounding used - correct answer a. no you pay more than its
worth
Consider an investment that will pay $680 per month for the next 15 years and will be
worth $28,000 at the end of that time. How much is this investment worth to you
today at a 5.25 percent discount rate?
a. less than $5,000
b. between $5,000 and $10,000
c. between $10,001 and $25,000
d. more than $25,000 - correct answer c. between $10,001 and $25,000
You have just borrowed $10,000 and will be required to make monthly payments of
$227.53 for the next five years in order to fully repay the loan. What is the implicit
interest rate on this loan?
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
When we consider the time value of money, a dollar received in the future:
a. is worth less than a dollar received today
b. is worth more than a dollar received today
c. is worth the same as a dollar received today
d. depends on the cimpounding used to determine the relationship to a dollar
received today - correct answer a. is worth less than a dollar received today
As a gift from your parents, you just received $50,000 for your education for the next
four years. You can earn an annual rate of 8% on your investments. How much can
you withdraw each year (end of year) just using up the $50,000?
a. $12,500
b. $11,096
c. $11,750
d. $15,096 - correct answer b. $11,096
You would like to have $500,000 put away in 20 years for your retirement. You plant
to put away $14,000 each year (end of year). What is the minimum interest rate that
you would need to receive $500,000.
a. 6.5%
, FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
b. 5.72%
c. 5%
d. 4.5% - correct answer b. 5.72%
A gallon of milk cost $3.59 today. How much will it cost you to buy a gallon of milk
for your gradnchildren in 35 years if infation averages 5% per year?
a. $3.77
b. $6.28
c. $12.34
d. $19.80 - correct answer d. $19.80
Your grandmother is offered a series of $6,000 starting one year from today. The
payments will be made at the end of each year of the next 10 years. Similar risk
investments are yielding 7%. What should she pay for the investment?
a. $60,000
b. $45,091
c. $42,141
d. $30,501 - correct answer c. $42,141
The Dallas Development Corporation is considering the purchase of an apartment
project for $100,000. They estimate that they will receive $15,000 at the end of each
, FIN 300 Final Exam (Latest Update 2026 /
2027) Questions and Verified Answers
{Grade A} 100 % Correct - BYU
year for the next 10 years. At the end of the 10th year, the apartment project will be
worth nothing. If the company insists on a 9 percent return comounded annually on
its investment, is this a good investment?
a. no you pay more than its worth
b. yes, it's worth more than you pay
c. its worth the same either way
d. depends on the compounding used - correct answer a. no you pay more than its
worth
Consider an investment that will pay $680 per month for the next 15 years and will be
worth $28,000 at the end of that time. How much is this investment worth to you
today at a 5.25 percent discount rate?
a. less than $5,000
b. between $5,000 and $10,000
c. between $10,001 and $25,000
d. more than $25,000 - correct answer c. between $10,001 and $25,000
You have just borrowed $10,000 and will be required to make monthly payments of
$227.53 for the next five years in order to fully repay the loan. What is the implicit
interest rate on this loan?
