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QUIZ (CH1-CH4)

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QUIZ (CH1-CH4)

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QUIZ (CH1-CH4)

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Sundoss ALMahadeen
Sundoss ALMahadeen
Jordan

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QUIZ (CH1-CH4)Online version

QUIZ (CH1-CH4)

by Sundoss ALMahadeen
1

The time it would take for a given sum of money to double at 4% per year simple interest is closest to:

2

At an interest rate of 10% per year, the equivalent amount of $10,000 one year ago is closest to:

3

A manufacturing company spent $30,000 on a new conveyor belt. If the conveyor belt resulted in cost savings of $4200 per year, the length of time it would take for the company to recover its investment at 8% per year is closest to:

4

The value of the factor ( P/F , i ,10) can be found by getting the factor values for (P/F,i,4) and ( P/F , i ,6) and:

5

At i 4% per year, A for years 1 through 6 of the cash flows shown below is closest to:

6

A manufacturer of toilet flush valves wants to have $1,900,000 available 3 years from now so that a new product line can be initiated. If the company plans to deposit money each year, starting now , the equation that represents the deposit each year at 8% per year interest is:

7

The net present worth in year 0 of the following series of incomes and expenses at 8% per year is closest to:

8

For the cash flows shown, the value of X that will make the present worth in year 0 equal to $5000 at an interest rate of 10% per year is closest to:

9

If you make quarterly deposits for 3 years into an account that compounds interest at 1% per month, the value of n in the F/A factor that will determine F at the end of the 3-year period is:

10

For an interest rate of 2% per month, the effective semiannual interest rate is:

11

Identify the following interest rates as nominal or effective. Rate 1: 1.5% per quarter Rate 2: 1.5% per quarter, compounded monthly

12

An engineer who is saving for her retirement plans to deposit $500 every quarter, starting one quarter from now, into an investment account. If the account pays interest at 6% per year, compounded semiannually, the total she will have at the end of 25 years is closest to:

13

The cost of replacing part of a cell phone video chip production line in 6 years is estimated to be $500,000. At an interest rate of 14% per year, compounded semiannually, the uniform amount that must be deposited every 6 months is closest to:

 
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