You have $300,000 that you want to invest in a one year Certificate of Deposit (CD) with a 4% annual interest rate. What will be the value of that CD in a year?
Which of the following is the correct formula for calculating future value with simple interest?
You plan to invest $100,000 in a 3 year Certificate of Deposit that has a 5% compound interest rate. What is its future value?
You plan to invest $100,000 in a 3 year Certificate of Deposit that has a simple interest rate of 5%. What is its future value?
What is the future value in 30 years of $100,000 invested today in a savings account earning a 1% compound interest rate every year (rounded up to the nearest dollar)?
What is the future value in 30 years of $100,000 invested today in a savings account earning a 1% simple interest rate every year (rounded up to the nearest dollar)?
An annuity pays $1500 at the beginning of every month for five years. The interest rate of the annuity is 4%. What is this annuity’s future value?
A five year annuity pays $1000 at the end of every month for four years. It has an interest rate of 3%. What is its present value?
You purchase a two year annuity for $2800. The annuity pays $1500 each year. What is the annuity’s approximate IRR?
Which of the following correctly defines a method of determining a single period investment’s yield?
You can purchase two three-year annuities today. One is valued at $2000, the other at $4000. The 1st annuity begins paying $1000 in a year. The 2nd annuity begins paying $1500 in two years. The interest rate is 5%. What is the PV of the portfolio?
You purchase two annuities. The first is for three years and pays $1500 annually. The second is for four years and pays $2000 annually. The interest rate for both is 4%. What is the Future Value of this portfolio?
Which of the following is a cost to the investor that is included in the calculation of an investment’s interest rate?
In a year, you expect to receive a payment of $1 million in a year. That annual interest rate is 5%. What is the present value of the future payment?
Assume you invest money in a bond that will pay you $250,000 in four years. The bond has an annual interest rate of 5%. You do not receive interest payments while you own the bond; it is zero-coupon. What is the bond’s present value?