FIN 571 WEEK 1 REVIEW QUESTIONS WITH
100% CORRECT ANSWERS
If the future value of a one-period investment is given by the formula, F = I + (I × R), what
is the formula for the amount of the investment, I?
I = F/(1 + R)
The opposite process rule says to solve for ________.
an unknown variable by reversing the process used to form the original equation
When solving for an unknown that involves more than one process, the multiple process
rule requires that ________.
the variable is first isolated on one side of the equals sign
If the future value of a one-period investment is given by the formula, F = I + (I × R), what
is the formula for the rate of interest, R?
R = (F - I)/I
If the bank returns $50 on a $1,000 deposit after one year, what is the interest rate earned
on this deposit?
5%
What is the total amount of current assets to be reported on XYZ Company's 12/31/X1
classified balance sheet?
$112,800
What is the total amount of long-term assets to be reported on XYZ Company's 12/31/X1
classified balance sheet?
$115,600
What is the total amount of current liabilities to be reported on XYZ Company's 12/31/X1
classified balance sheet?
$22,600
What is the ending balance in retained earnings to be reported on XYZ Company's
12/31/X1 classified balance sheet?
$72,100
What is the total amount of stockholders' equity to be reported on XYZ Company's
12/31/X1 classified balance sheet?
$154,100
, A business acquaintance promises to deliver a $20 bill to you one year from today. How
much should you be willing to pay today for this promise?
Less than $20
What is the present value of $1,000 received three years from today if interest rates are
currently 6 percent?
$839.62
What is the interest rate on a three-year investment with a future value of $1000 and a
present value of $863.84?
5%
The product rule of exponents says that when multiplying two powers that have the same
base, you need to ________.
add the exponents
The fifth root of fifteen is equal to ________.
15 raised to the power of 1/5
You are working on an Excel table and realize that you need to add a row to the middle of
your table. What is one way to do this?
Highlight the row, then click on the Insert Cells button under the Home ribbon.
You are working on an Excel table and realize that you need to add a single cell to your
table. What is one way to do this?
Highlight the cell, then click on the Insert Cells button under the Home ribbon.
You are working on an Excel table and realize that you need to delete a column in the
middle of your table and shift the remaining data columns to the left. What is one way to
do this?
Highlight the column, then click on the Delete Cells button under the Home ribbon.
You are valuing an investment that will produce cash flows of $10,000 each year for 15
years. What is the quickest way to enter $10,000 into each of the 15 cells of your table?
Type $10,000 into the first cell, then highlight that cell and use your cursor to drag the fill handle
through the remaining 14 cells.
You have three tables in a worksheet in Excel. You need to sort one of the tables
numerically, from smallest to largest values. How can you do this?
Highlight the table, then click on the Data ribbon and find the Sort & Filter button. Use the
Custom Sort option to sort from smallest to largest.
100% CORRECT ANSWERS
If the future value of a one-period investment is given by the formula, F = I + (I × R), what
is the formula for the amount of the investment, I?
I = F/(1 + R)
The opposite process rule says to solve for ________.
an unknown variable by reversing the process used to form the original equation
When solving for an unknown that involves more than one process, the multiple process
rule requires that ________.
the variable is first isolated on one side of the equals sign
If the future value of a one-period investment is given by the formula, F = I + (I × R), what
is the formula for the rate of interest, R?
R = (F - I)/I
If the bank returns $50 on a $1,000 deposit after one year, what is the interest rate earned
on this deposit?
5%
What is the total amount of current assets to be reported on XYZ Company's 12/31/X1
classified balance sheet?
$112,800
What is the total amount of long-term assets to be reported on XYZ Company's 12/31/X1
classified balance sheet?
$115,600
What is the total amount of current liabilities to be reported on XYZ Company's 12/31/X1
classified balance sheet?
$22,600
What is the ending balance in retained earnings to be reported on XYZ Company's
12/31/X1 classified balance sheet?
$72,100
What is the total amount of stockholders' equity to be reported on XYZ Company's
12/31/X1 classified balance sheet?
$154,100
, A business acquaintance promises to deliver a $20 bill to you one year from today. How
much should you be willing to pay today for this promise?
Less than $20
What is the present value of $1,000 received three years from today if interest rates are
currently 6 percent?
$839.62
What is the interest rate on a three-year investment with a future value of $1000 and a
present value of $863.84?
5%
The product rule of exponents says that when multiplying two powers that have the same
base, you need to ________.
add the exponents
The fifth root of fifteen is equal to ________.
15 raised to the power of 1/5
You are working on an Excel table and realize that you need to add a row to the middle of
your table. What is one way to do this?
Highlight the row, then click on the Insert Cells button under the Home ribbon.
You are working on an Excel table and realize that you need to add a single cell to your
table. What is one way to do this?
Highlight the cell, then click on the Insert Cells button under the Home ribbon.
You are working on an Excel table and realize that you need to delete a column in the
middle of your table and shift the remaining data columns to the left. What is one way to
do this?
Highlight the column, then click on the Delete Cells button under the Home ribbon.
You are valuing an investment that will produce cash flows of $10,000 each year for 15
years. What is the quickest way to enter $10,000 into each of the 15 cells of your table?
Type $10,000 into the first cell, then highlight that cell and use your cursor to drag the fill handle
through the remaining 14 cells.
You have three tables in a worksheet in Excel. You need to sort one of the tables
numerically, from smallest to largest values. How can you do this?
Highlight the table, then click on the Data ribbon and find the Sort & Filter button. Use the
Custom Sort option to sort from smallest to largest.
