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Financial Technique Quiz

With semiannual compounding, how often will you be paid interest per year?

In general, the longer the investment period, the higher the future value.

In order to determine the value in one year of a $1,000 investment made today, with a 10% interest rate, what financial technique would you use?

What financial technique should you use in order to determine loan payments and amortization schedules?

Smith Co. Construction is considering a project that should result in a $200,000 profit in three years. What financial technique would they use in order to determine the value today for those future profits?

The cash flows from what type of investment are considered a perpetuity?

The concept of compound interest is best described as what?

If you will receive a $500 payment at the end of every year for the next 15 years, what type of investment do you have?

You are considering investing in a retirement fund that requires you to deposit $5,000 per year, you want to know how much the fund will be worth when you retire, what financial technique should you use?

With an annuity due you receive payments at the end of each period.