University of North Georgia, Dahlonega FINC 3440 Exam 10 1)What is the present value of $3 million to be received in four years if the discount rate is 6.6% per year? Eight years ago you invested $400 and the investment is now worth $1,359. What annual rate of return did you earn? What is the future value of an ordinary annuity that pays $700 every six months for three years if the interest rate is 8.4% per year? If the present value of an ordinary annuity that pays $175 each year for ten years is $1,357.89, what is the annual discount rate? If you borrow $2,000 for four years at an interest rate of 8.0% per year, what is the annual loan payment? Assume that you borrow $27,000 for six years to buy a car at an interest rate of 4.8% per year. If the loan has monthly payments, what is the total amount of interest that you will pay over the life of the loan? Assume that you borrow $50,000 for five years at an interest rate of 4.4% per year. If the loan has semiannual payments, what is the

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University of North Georgia, Dahlonega FINC 3440 Exam 10 1)What is the present value of $3 million to be received in four years if the discount rate is 6

Finance Jun 17, 2021

University of North Georgia, Dahlonega

FINC 3440

Exam 10

1)What is the present value of $3 million to be received in four years if the discount rate is 6.6% per year?

Eight years ago you invested $400 and the investment is now worth $1,359. What annual rate of

return did you earn?

What is the future value of an ordinary annuity that pays $700 every six months for three years if the interest rate is 8.4% per year?
If the present value of an ordinary annuity that pays $175 each year for ten years is $1,357.89,

what is the annual discount rate?

If you borrow $2,000 for four years at an interest rate of 8.0% per year, what is the annual loan payment?

Assume that you borrow $27,000 for six years to buy a car at an interest rate of 4.8% per year. If the loan has monthly payments, what is the total amount of interest that you will pay over the life of the loan?
Assume that you borrow $50,000 for five years at an interest rate of 4.4% per year. If the loan

has semiannual payments, what is the amount of principal in the first payment?

If the present value of a perpetuity is $10,6330 when the discount rate is 4.7% per year, what is the amount of the annual payment?
A security will pay $100 in one year, $200 in two years, and $300 in three years. If the appropriate discount rate is 6.7% per year, what is the value of the security today?
You intend to lease a $36,000 car. The lease term is four years and the financing rate is 5.3% per year. If the value of the car at the end of the lease is expected to be $16,500, what is the monthly lease payment?

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