Ryerson University
FIN300
Midterm Exam
Version A – Solution Key
Student Name (Please print)
Student Number
Notes:
1. This is a 2-hour exam. There are 11 pages in this exam, including the cover page.
2. This is a closed book exam. You should only have writing instruments, calculators, and one double-
sided note sheet (8.5x11”) at your desk.
3. Please fill out the scanner sheet as you go during the exam – there is no extra time to fill it out at the end.
4. Select the best possible answer for each multiple-choice question.
5. Each of the 31 MC questions is worth 1 mark. However, I will mark the midterm is out of 30.
,1. Your bank account pays monthly interest with an EAR of 10%. You are
planning to buy a house in 10 years, and you wish to save $100,000 for the
down payment. If you currently have no money in your account, how much will
you need to save at the end of each month?
A) $488.17
B) $500.35
C) $9646.39
D) $833.33
E) $475.13
2. Given a nominal interest rate of 3% and an inflation rate of 4.5%, what is the
real interest rate?
A) 7.5%
B) 0%
C) -1.4%
D) 3%
E) -1.5%
3. Faisal has $15,000 in his savings account and can save an additional $5000 per
year. If interest rates are 12%, how long will it take his savings to grow to
$50,000?
A) 4 years
B) 3 years
C) years
D) years
E) 5 years
, Use the table for the question(s) below.
2
FIN300
Midterm Exam
Version A – Solution Key
Student Name (Please print)
Student Number
Notes:
1. This is a 2-hour exam. There are 11 pages in this exam, including the cover page.
2. This is a closed book exam. You should only have writing instruments, calculators, and one double-
sided note sheet (8.5x11”) at your desk.
3. Please fill out the scanner sheet as you go during the exam – there is no extra time to fill it out at the end.
4. Select the best possible answer for each multiple-choice question.
5. Each of the 31 MC questions is worth 1 mark. However, I will mark the midterm is out of 30.
,1. Your bank account pays monthly interest with an EAR of 10%. You are
planning to buy a house in 10 years, and you wish to save $100,000 for the
down payment. If you currently have no money in your account, how much will
you need to save at the end of each month?
A) $488.17
B) $500.35
C) $9646.39
D) $833.33
E) $475.13
2. Given a nominal interest rate of 3% and an inflation rate of 4.5%, what is the
real interest rate?
A) 7.5%
B) 0%
C) -1.4%
D) 3%
E) -1.5%
3. Faisal has $15,000 in his savings account and can save an additional $5000 per
year. If interest rates are 12%, how long will it take his savings to grow to
$50,000?
A) 4 years
B) 3 years
C) years
D) years
E) 5 years
, Use the table for the question(s) below.
2
