CH4 FINA 5320 EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
1 ) Thomas invests $ 111 in an account that pays 5 percent simple interest . How much money will
Thomas have at the end of 5 years A ) $ 133.201 B $ 144.30 C $ 134.92 D $ 141.67 E $ 138.75 -
Answers E.
2 ) Beatrice invests $ 1,350 in an account that pays 4 percent simple interest How much more could
she have earned over a 5 - year period if the interest had been compounded annually ? A ) 32.73 B ) $
112.41 C ) $ 26.18 D $ 18.92 ( E $ 22.48 - Answers E.
3 ) You can invest in an account that pays simple interest or an account that pays compound interest
either case you plan to invest $ 2,700 today and both accounts have annual interest rate of 6 percent
How much more interest will you receive in the 9th year in the account that pays compound interest ?
A ) $ 109.05 B ) 113.36 C ) 162.00 D)96.20 E ) 109.87 - Answers D
4 ) What is the future value of $ 3,058 invested for 10 years at 5.8 percent compounded
A) 4,069.97 B) 4053.83 C) 9,443.89 D) 9163.88 E) 5373.96 - Answers E
5 Five years from today you plan to invest $ 3,250 for 10 additional years at 5.5 percent compounded
annually How much will you have in your account 15 from today A ) $ 7,255.55 B ) $ 5,937.92 C ) $
4,481.24 D ) $ 5,551.47 E ) $ 6,055.15 - Answers D
6 ) Today your dream car costs $ 63,300 You feel that the price of the car will increase at an annual
rate 1.7 percent you plan to wait 7 years to buy the car , how much will it cost at that 0 A ) 70,037.31
B ) 71,227.94 C ) $ 71,731.62 D ) $ 73,715.70 E $ 72,438.81 0 - Answers B
7 ) You are going to deposit $ 3,000 in an account that pays .56 percent interest per quarter How
much will you have in 6 years? A) 3434.08 B) 3430.26 C) 3449.47 D) 3411.16 E) 3426.26 - Answers B
8 ) You are going to deposit $ 4,200 in an account that pays .48 percent interest per month . How
much will you have in 5 years A ) 5,571.18 B 5,597.92 C ) $ 5,603.52 D ) $ 5,624.7900032 E ) $ 5,557.21
- Answers B
9 ) Retirement Investment Advisors Incorporated has just offered you an annual interest rate of 6
percent until you retire in 40 years You believe that interest rates will increase over the next year and
you would be offered 6.6 percent per year one year from today . If you plan to deposit $ 18,000 into
the account either this year or next year , how much more will you have when you retire if you wait
one year make your deposit ? A ) $ 32,529.54 B ) $ 22,866.08 C ) $ 12,219.43 D ) $ 49,213.56 E ) $
48,043.26 - Answers A
10 ) You just purchased two coins at a price of $ 610 each Because one of the coins is more
collectible , you believe that its value will increase at a rate of 7 percent per year , while you believe
the second coin will only increase at 6.4 percent per year . If you are correct how much more will the
first coin be worth in 10 years ? A) 37.60 B) 5520.24 C) 647.60 D) 84.00 E) 65.61 - Answers E.
11 ) You are going to deposit $ 19,000 today You will earn an annual rate of 3.3 percent for 11 years
and then earn an annual rate of 2.7 percent for 14 years . How much will you have in your account in
25 years ? A) 36984.07 B) 39432.50 C) 27,155.46 D) 36402.57 E) 42782.05 - Answers B
12 ) You Save Bank has a unique account If you deposit $ 8,000 today the bank will pay you an annual
interest rate of 3 percent for 5 years , 3.6 percent for 4 years and 4.3 percent for 8 years . How much
will you have in your account in 17 years ? A)$ 14,962.00 B ) 12,643.06 C ) $ 14,177.29 D ) $ 13,222.78
E ) $ 11,785.74 - Answers A
13 The most recent census for a city indicated that there were 867,771 residents The population of
the city is expected to increase at an annual rate of 3.2 percent each year for the next 8 years What
will the population be at that time ? A 1,136,773 B ) 1,189,055 C ) 1,152,186 ( D ) 1,116,459 E )
1,160,473 - Answers D
14 ) What is the present value of $ 12,450 to be received 2 years from today if the discount rate is 6
percent ? ☐ A $ 10,673.87 B ) $ 9,839.42 ( C ) $ 11,080.46 D ) $ 7,470.00 E ) $ 11,745.28 - Answers C.
15 You need to an annual interest rate of 3.5 percent how much will you have to deposit today ? have
$ 25,000 for a down payment on a house in 7 years . If you can earn A $ 18,618.72 B ) $ 15,985.10 9 $
19,649.77 D $ 18,997.95 E ) $ 18,985.29 - Answers C
can earn an annual interest rate of 4.5 percent , how much must it deposit today to fund this 16 ) A
company has a pension liability of $ 490,000,000 that it must pay in 27 in years . If it liability ? A ) $
121,515,046.67 B ) $ 142,869,639.05 C) $ 149,298,772.80 D ) $ 47,537,100.25 E ) $ 131,245,676.31 -
Answers C
1 ) Thomas invests $ 111 in an account that pays 5 percent simple interest . How much money will
Thomas have at the end of 5 years A ) $ 133.201 B $ 144.30 C $ 134.92 D $ 141.67 E $ 138.75 -
Answers E.
2 ) Beatrice invests $ 1,350 in an account that pays 4 percent simple interest How much more could
she have earned over a 5 - year period if the interest had been compounded annually ? A ) 32.73 B ) $
112.41 C ) $ 26.18 D $ 18.92 ( E $ 22.48 - Answers E.
3 ) You can invest in an account that pays simple interest or an account that pays compound interest
either case you plan to invest $ 2,700 today and both accounts have annual interest rate of 6 percent
How much more interest will you receive in the 9th year in the account that pays compound interest ?
A ) $ 109.05 B ) 113.36 C ) 162.00 D)96.20 E ) 109.87 - Answers D
4 ) What is the future value of $ 3,058 invested for 10 years at 5.8 percent compounded
A) 4,069.97 B) 4053.83 C) 9,443.89 D) 9163.88 E) 5373.96 - Answers E
5 Five years from today you plan to invest $ 3,250 for 10 additional years at 5.5 percent compounded
annually How much will you have in your account 15 from today A ) $ 7,255.55 B ) $ 5,937.92 C ) $
4,481.24 D ) $ 5,551.47 E ) $ 6,055.15 - Answers D
6 ) Today your dream car costs $ 63,300 You feel that the price of the car will increase at an annual
rate 1.7 percent you plan to wait 7 years to buy the car , how much will it cost at that 0 A ) 70,037.31
B ) 71,227.94 C ) $ 71,731.62 D ) $ 73,715.70 E $ 72,438.81 0 - Answers B
7 ) You are going to deposit $ 3,000 in an account that pays .56 percent interest per quarter How
much will you have in 6 years? A) 3434.08 B) 3430.26 C) 3449.47 D) 3411.16 E) 3426.26 - Answers B
8 ) You are going to deposit $ 4,200 in an account that pays .48 percent interest per month . How
much will you have in 5 years A ) 5,571.18 B 5,597.92 C ) $ 5,603.52 D ) $ 5,624.7900032 E ) $ 5,557.21
- Answers B
9 ) Retirement Investment Advisors Incorporated has just offered you an annual interest rate of 6
percent until you retire in 40 years You believe that interest rates will increase over the next year and
you would be offered 6.6 percent per year one year from today . If you plan to deposit $ 18,000 into
the account either this year or next year , how much more will you have when you retire if you wait
one year make your deposit ? A ) $ 32,529.54 B ) $ 22,866.08 C ) $ 12,219.43 D ) $ 49,213.56 E ) $
48,043.26 - Answers A
10 ) You just purchased two coins at a price of $ 610 each Because one of the coins is more
collectible , you believe that its value will increase at a rate of 7 percent per year , while you believe
the second coin will only increase at 6.4 percent per year . If you are correct how much more will the
first coin be worth in 10 years ? A) 37.60 B) 5520.24 C) 647.60 D) 84.00 E) 65.61 - Answers E.
11 ) You are going to deposit $ 19,000 today You will earn an annual rate of 3.3 percent for 11 years
and then earn an annual rate of 2.7 percent for 14 years . How much will you have in your account in
25 years ? A) 36984.07 B) 39432.50 C) 27,155.46 D) 36402.57 E) 42782.05 - Answers B
12 ) You Save Bank has a unique account If you deposit $ 8,000 today the bank will pay you an annual
interest rate of 3 percent for 5 years , 3.6 percent for 4 years and 4.3 percent for 8 years . How much
will you have in your account in 17 years ? A)$ 14,962.00 B ) 12,643.06 C ) $ 14,177.29 D ) $ 13,222.78
E ) $ 11,785.74 - Answers A
13 The most recent census for a city indicated that there were 867,771 residents The population of
the city is expected to increase at an annual rate of 3.2 percent each year for the next 8 years What
will the population be at that time ? A 1,136,773 B ) 1,189,055 C ) 1,152,186 ( D ) 1,116,459 E )
1,160,473 - Answers D
14 ) What is the present value of $ 12,450 to be received 2 years from today if the discount rate is 6
percent ? ☐ A $ 10,673.87 B ) $ 9,839.42 ( C ) $ 11,080.46 D ) $ 7,470.00 E ) $ 11,745.28 - Answers C.
15 You need to an annual interest rate of 3.5 percent how much will you have to deposit today ? have
$ 25,000 for a down payment on a house in 7 years . If you can earn A $ 18,618.72 B ) $ 15,985.10 9 $
19,649.77 D $ 18,997.95 E ) $ 18,985.29 - Answers C
can earn an annual interest rate of 4.5 percent , how much must it deposit today to fund this 16 ) A
company has a pension liability of $ 490,000,000 that it must pay in 27 in years . If it liability ? A ) $
121,515,046.67 B ) $ 142,869,639.05 C) $ 149,298,772.80 D ) $ 47,537,100.25 E ) $ 131,245,676.31 -
Answers C
