Review Test Submission: Quiz 4

Instructions This quiz consist of 10 multiple choice questions and covers the material in Chapter 9. Be sure you are in Chapter 9 when you take the quiz.

• Question 1

Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years?

• Question 2

What would be the future value of a loan of $1,000 for two years if the bank offered a 10% interest rate compounded semiannually?

• Question 3

Consolidated Freightways is financing a new truck with a loan of $60,000 to be repaid in six annual end-of-year installments of $13,375. What annual interest rate is Consolidated Freightways paying?

• Question 4

The future value of $100 received today and deposited at 6 percent for four years is

• Question 5

For positive interest rates, the future value interest factor is

• Question 6

When compounding more than once a year, the true opportunity costs measure of the interest rate is indicated by the:

• Question 7

In future value or present value problems, unless stated otherwise, cash flows are assumed to be

• Question 8

For positive interest rates, the present value interest factor is

• Question 9

An annuity with an infinite life is called a (n)

• Question 10

For a given interest rate, as the length of time until receipt of the funds increases, the present value interest factor