Quiz: Assignment 2 (Individual) 20/4/24, 12:49
Assignment 2 (Individual)
Started: Apr 20 at 12:48pm
Quiz Instructions
Choose the closest alternative.
Question 1 1 pts
What is the future value of $500 after 3 years if the appropriate interest rate is 8%, compounded
daily?
$629.86
$635.12
$635.61
Question 2 1 pts
Suppose you can buy a Treasury bond that makes no payments until the bond matures 10 years
from now, at which time it will pay you $1,000. What interest rate would you earn if you bought this
bond for $800?
1.12 %
5.24%
2.26%
2.59%
Question 3 1 pts
How long would it take $6,000 to double if it were invested in a bank that pays 5% per year?
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Quiz: Assignment 2 (Individual) 20/4/24, 12:49
14.2 yrs
8.0 yrs
11.9 yrs
7.3 yrs
Question 4 1 pts
Suppose you inherited $100,000 and invested it at 6% per year. How large of a withdrawal could
you make at the end of each of the next 10 years and end up with a zero remaining balance?
$13,587
$14,313
Question 5 1 pts
How long would it take $5,000 to double if it were invested in a bank that pays 6% per year?
14.2 yrs
8.0 yrs
11.9 yrs
7.3 yrs
Question 6 1 pts
What is the present value of $500 due in 3 years if the appropriate interest rate is 8%,
compounded daily?
$393.32
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Quiz: Assignment 2 (Individual) 20/4/24, 12:49
$395.16
$396.92
Question 7 1 pts
How long would it take $6,000 to triple if it were invested in a bank that pays 5% per year?
11.9 yrs
14.2 yrs
22.5 yrs
18.9 yrs
Question 8 1 pts
How long would it take $5,000 to triple if it were invested in a bank that pays 6% per year?
11.9 yrs
22.5 yrs
18.9 yrs
14.2 yrs
Question 9 1 pts
What is the PVA of an annuity due with 10 payments of $100 if the appropriate interest rate is 0%?
$1,000
More than $1,000
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Quiz: Assignment 2 (Individual) 20/4/24, 12:49
Less than $1,000
Cannot be computed
Question 10 1 pts
What is the future value of $500 after 3 years if the appropriate interest rate is 8%, compounded
monthly?
$629.86
$635.61
$635.12
Question 11 1 pts
How long would it take $6,000 to double if it were invested in a bank that pays 5% per year
compounded continuously?
20 yrs
14.2 yrs
13.7 yrs
11.9 yrs
Question 12 1 pts
What is the PVA of an ordinary annuity with 10 payments of $100 if the appropriate interest rate is
0%?
Cannot be computed
$1,000
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Quiz: Assignment 2 (Individual) 20/4/24, 12:49
Less than $1,000
More than $1,000
Question 13 1 pts
How long would it take $9,000 to double if it were invested in a bank that pays 10% per year?
8.0 yrs
11.9 yrs
14.2 yrs
7.3 yrs
Question 14 1 pts
If you had $120,000 that was invested at 6% and you wanted to withdraw $12,000 at the end of
each year, how long would your funds last?
15.73 yrs
21.85 yrs
Question 15 1 pts
How long would it take $10,000 to double if it were invested in a bank that pays 9% per year?
8.0 yrs
14.2 yrs
7.3 yrs
11.9 yrs
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Quiz: Assignment 2 (Individual) 20/4/24, 12:49
Question 16 1 pts
Suppose you inherited $120,000 and invested it at 6% per year. How large of a withdrawal could
you make at the end of each of the next 12 years and end up with a zero remaining balance?
$13,587
$14,313
Question 17 1 pts
Your rich uncle named you as the beneficiary of his life insurance policy. The insurance company
gives you a choice of $120,000 today or a 12-year annuity of $12,000 at the end of each year.
What rate of return is the insurance company offering?
2.92%
6.11%
Question 18 1 pts
Suppose you can buy a Treasury bond that makes no payments until the bond matures 20 years
from now, at which time it will pay you $1,000. What interest rate would you earn if you bought this
bond for $800?
1.12 %
5.24%
2.59%
2.26%
Question 19 1 pts
How long would it take $6,000 to double if it were invested in a bank that pays 5% per year simple
interest?
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Quiz: Assignment 2 (Individual) 20/4/24, 12:49
13.7 yrs
14.2 yrs
11.9 yrs
20 yrs
Question 20 1 pts
If you had $120,000 that was invested at 6% and you wanted to withdraw $10,000 at the end of
each year, how long would your funds last?
21.85 yrs
15.73 yrs
Quiz saved at 12:48pm Submit Quiz
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