5 Minute Quiz

1
5 Minute Quiz
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2
5 Minute Quiz
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Continuously Compounded Rates 25 points
Effective Rates 20 points
Present Value 5 points

Multiple Payments 15 points
Future Value 7 points
Future Value 10 points
Find Rate 18 points
3
Times Up

• Add up your score.
• Speed and accuracy are very important!

Exit
4
5 pointsPresent Value Problem
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• Youve saved enough, at 6 interest, to ensure
  that little Peggy Sue will have 150,000 to pay
  for college in 15 years. How much have you
  saved?

61,231 62,590 64,849 66,108
67,367
Next question
5
Present Value Problem

• Youve saved enough, at 6 interest, to ensure
  that little Peggy Sue will have 150,000 to pay
  for college in 15 years. How much have you
  saved?
• Incorrect!
• -5 points
• 150,000/(1.06)15
• 62,590

Next question
6
Present Value Problem

• Youve saved enough, at 6 interest, to ensure
  that little Peggy Sue will have 150,000 to pay
  for college in 15 years. How much have you
  saved?
• Correct!
• 5 points
• 150,000/(1.06)15
• 62,590

Next question
7
7 pointsFuture Value Problem
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• Youve deposited 100,000 in the bank at 4.
  Assuming that the rate doesn't change, how much
  will you have in 40 years?

272k 480k 507k 535k
572k 601k
Next question
8
Future Value Problem

• Youve deposited 100,000 in the bank at 4.
  Assuming that the rate doesn't change, how much
  will you have in 40 years?
• Incorrect!
• -7 points
• 100k (1.04)40 100k(4.801)
• 480,102.06

Next question
9
Future Value Problem

• Youve deposited 100,000 in the bank at 4.
  Assuming that the rate doesn't change, how much
  will you have in 40 years?
• Correct!
• 7 points
• 100k (1.04)40 100k(4.801)
• 480,102.06

Next question
10
10 pointsFuture Value
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• You just deposited 1,000 in a bank at 7
  interest. How much will you have in 5 years, if
  the interest rate stays the same and you make no
  additional deposits or withdrawals?

1,391 1,395 1,399
1,403 1,407
Next question
11
Future Value Problem

• You just deposited 1,000 in a bank at 7
  interest. How much will you have in 5 years, if
  the interest rate stays the same and you make no
  additional deposits or withdrawals?
• Incorrect!
• -10 points
• F 1000(1.07)5
• 1,403

Next question
12
Future Value Problem

• You just deposited 1,000 in a bank at 7
  interest. How much will you have in 5 years, if
  the interest rate stays the same and you make no
  additional deposits or withdrawals?
• Correct.
• 10 points
• F 1000(1.07)5
• 1,403

Next question
13
15 pointsMultiple Payments
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• Your boss has offered to pay you 10,000 now,
  20,000 in 1 year, and 30,000 in 2 years,
  instead of the 45,000 salary he owes you now.
  i10. The best choice has a present value that
  is larger by

2,341 6,351 7,975
8,216 9,634
Next question
14
Multiple Payments

• Your boss has offered to pay you 10,000 now,
  20,000 in 1 year, and 30,000 in 2 years,
  instead of the 45,000 salary he owes you now.
  i10. The best choice has a present value that
  is larger by
• Incorrect! -15 points
• 10k/(1.10)0 10,000.00 52,975.21
• 20k/(1.10)1 18,181.82 -45,000.00
• 30k/(1.10)2 24,793.39 7,975.21
• 52,975.21

Next question
15
Multiple Payments

• Your boss has offered to pay you 10,000 now,
  20,000 in 1 year, and 30,000 in 2 years,
  instead of the 45,000 salary he owes you now.
  i10. The best choice has a present value that
  is larger by
• Correct! 15 points
• 10k/(1.10)0 10,000.00 52,975.21
• 20k/(1.10)1 18,181.82 -45,000.00
• 30k/(1.10)2 24,793.39 7,975.21
• 52,975.21

Next question
16
18 pointsFind the rate problem
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• You invested 10,000 into Icicle Technologies
  stock 7 years ago. You havent gotten any
  dividends, but the stock is now worth 35,832.
  What rate of return have you gotten?

11 14 17 20 23
Next question
17
Find the rate problem

• You invested 10,000 into Icicle Technologies
  stock 7 years ago. You havent gotten any
  dividends, but the stock is now worth 35,832.
  What rate of return have you gotten?
• Incorrect!
• -18 points
• 10,000(1i)7 35,832
• ? i 20.00

Next question
18
Find the rate problem

• You invested 10,000 into Icicle Technologies
  stock 7 years ago. You havent gotten any
  dividends, but the stock is now worth 35,832.
  What rate of return have you gotten?
• Correct
• 18 points
• 10,000(1i)7 35,832
• ? i 20.00

Next question
19
25 pointsContinuously Compounded Rates
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• Youve invested 50,000 at a continuously
  compounded rate (r) of 3 for 3 years. How much
  money will you get in 3 years?

53,671 53,837 54,429 54,709
55,417
Next question
20
Continuously Compounded Rates

• Youve invested 50,000 at a continuously
  compounded rate (r) of 3 for 3 years. How much
  money will you get in 3 years?
• Incorrect!
• -25 points
• 50,000 e(3)(.03)
• 50k(1.0942) 54,709

Next question
21
Continuously Compounded Rates

• Youve invested 50,000 at a continuously
  compounded rate (r) of 3 for 3 years. How much
  money will you get in 3 years?
• Correct!
• 25 points
• 50,000 e(3)(.03)
• 50k(1.0942) 54,709

Next question
22
20 pointsEffective Rate Problem
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• You are receiving 16 interest, compounded
  quarterly (4 times a year), from your bank. What
  is the effective annual rate?

14.84 16.00 16.51 16.74
16.99
Next question
23
Effective Rate Problem

• You are receiving 16 interest, compounded
  quarterly (4 times a year), from your bank. What
  is the effective annual rate?
• Incorrect!
• -20 points
• 1 i/mm-1
• 1.044 1 16.99

Next question
24
Effective Rate Problem

• You are receiving 16 interest, compounded
  quarterly (4 times a year), from your bank. What
  is the effective annual rate?
• Correct!
• 20 points
• 1 i/mm-1
• 1.044 1 16.99

Next question