# FIN 3403 Principles of Financial Mgmt (Spring 2015) Chapter 5 Quiz

June 9, 2016

Question
Review Test Submission: Chapter 5 Quiz

Course Principles of Financial Mgmt [Spring 2015]

Test Chapter 5 Quiz

Started 1/19/15 4:38 PM

• Question 1

1 out of 1 points

Today, you earn a salary of \$42,500. What will be your annual salary 10 years from now if you earn annual raises of 3.2 percent?

• Question 2

1 out of 1 points

Thirty years ago, your father invested \$11,000. Today, that investment is worth \$287,047. What is the average annual rate of return your father earned on his investment?

• Question 3

1 out of 1 points

The future value interest factor is computed as:

• Question 4

1 out of 1 points

What is the present value of \$36,800 to be received 6 years from today if the discount rate is 12 percent?

• Question 5

1 out of 1 points

The process of accumulating interest on an investment over time to earn more interest is called:

• Question 6

1 out of 1 points

On your thirteenth birthday, you received \$1,000 which you invested at 6.5 percent interest, compounded annually. Your investment is now worth \$5,476. How old are you today?

• Question 7

1 out of 1 points

As the discount rate increases, the present value of \$2,000 to be received four years from now:

• Question 8

1 out of 1 points

The present value interest factor is computed as:

• Question 9

1 out of 1 points

Given r and t greater than zero, what is true concerning Lump Sum present and future value interest factors?

• Question 10

1 out of 1 points

You own a classic automobile that is currently valued at \$67,900. If the value increases by 8 percent annually, how much will the automobile be worth 15 years from now?