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FINA FINAL EXAM 2026
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
In three years you will begin receiving an annual payment of
$600 that will be made for two years. If the annual interest rate
is 12%, what will be the balance in your account at the end of
the fourth year?
A. $1,344
B. $2,025
C. $1,260
D. $1,272
E. $1,200 - correct answer-D. $1,272
Francis Scott Key just won a "Name That Tune" contest with a
grand prize of $220,000. However, the contest stipulates that
the winner will receive $100,000 immediately, and the
remainder divided equally at the end of each of the next 12
years. Assuming that he can earn 5% on his money, what is the
present value of his winnings? - correct answer-$188,632.52
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Wally, president of Wally's Burgers, is considering franchising.
He has a potential franchise agreement that would allow him to
receive 13 endofyear payments starting one year from now.
The first two payments would be $25,000 and $22,000 in one
and two years respectively, and then $18,000 per year after
that for 11 years. If Wally requires a return of 8.8%, what is the
present value of this stream of cash flows? - correct answer-
Molly, president of Molly's Muffins, is considering franchising.
She has a potential franchise agreement that would see her
receive payments of $28,000, $24,000, and $20,000 at the end
of years 1, 2, and 3 respectively, and then $12,000 per year
after that for 17 years. If Molly requires a return of 10%, then
what is the present value of this stream of cash flows? (Round
answer to the nearest whole dollar)
A. $143,354
B. $132,636
C. $156,574
D. $124,440
E. $145,900 - correct answer-B. $132,636
Three years from now you will begin receiving annual payments
of $7,200. This will continue for 14 years. At a discount rate of
5.8%, what is the present value of this stream of cash flows?
A. $64,045.86
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B. $60,534.84
C. $51,253.11
D. $57,216.29
E. $54,523.00 - correct answer-
If you buy a factory for $250,000 and the terms are 20% down,
the balance to be paid off over 30 years at a 12 percent rate of
interest on the unpaid balance, what are the 30 equal annual
payments? (Round to the nearest whole dollar)
A. $50,212
B. $31,036
C. $6,667
D. $24,829
E. $20,593 - correct answer-D. $24,829
A Hummer H3 sells for $96,000 tax included. GMAC lends
money at the rate of 8.6% APR. If you buy the car and borrow
through GMAC, then what are the monthly (endofmonth)
payments for a 6year term? - correct answer-$1,711.45
Sally wants to buy a Ford Mustang. The MSRP is $28,478.
Ford offers a purchase financing plan with no money down and
48 endofmonth payments of $690. Should she buy the car for
FINA FINAL EXAM 2026
ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
In three years you will begin receiving an annual payment of
$600 that will be made for two years. If the annual interest rate
is 12%, what will be the balance in your account at the end of
the fourth year?
A. $1,344
B. $2,025
C. $1,260
D. $1,272
E. $1,200 - correct answer-D. $1,272
Francis Scott Key just won a "Name That Tune" contest with a
grand prize of $220,000. However, the contest stipulates that
the winner will receive $100,000 immediately, and the
remainder divided equally at the end of each of the next 12
years. Assuming that he can earn 5% on his money, what is the
present value of his winnings? - correct answer-$188,632.52
, Page | 2
Wally, president of Wally's Burgers, is considering franchising.
He has a potential franchise agreement that would allow him to
receive 13 endofyear payments starting one year from now.
The first two payments would be $25,000 and $22,000 in one
and two years respectively, and then $18,000 per year after
that for 11 years. If Wally requires a return of 8.8%, what is the
present value of this stream of cash flows? - correct answer-
Molly, president of Molly's Muffins, is considering franchising.
She has a potential franchise agreement that would see her
receive payments of $28,000, $24,000, and $20,000 at the end
of years 1, 2, and 3 respectively, and then $12,000 per year
after that for 17 years. If Molly requires a return of 10%, then
what is the present value of this stream of cash flows? (Round
answer to the nearest whole dollar)
A. $143,354
B. $132,636
C. $156,574
D. $124,440
E. $145,900 - correct answer-B. $132,636
Three years from now you will begin receiving annual payments
of $7,200. This will continue for 14 years. At a discount rate of
5.8%, what is the present value of this stream of cash flows?
A. $64,045.86
, Page | 3
B. $60,534.84
C. $51,253.11
D. $57,216.29
E. $54,523.00 - correct answer-
If you buy a factory for $250,000 and the terms are 20% down,
the balance to be paid off over 30 years at a 12 percent rate of
interest on the unpaid balance, what are the 30 equal annual
payments? (Round to the nearest whole dollar)
A. $50,212
B. $31,036
C. $6,667
D. $24,829
E. $20,593 - correct answer-D. $24,829
A Hummer H3 sells for $96,000 tax included. GMAC lends
money at the rate of 8.6% APR. If you buy the car and borrow
through GMAC, then what are the monthly (endofmonth)
payments for a 6year term? - correct answer-$1,711.45
Sally wants to buy a Ford Mustang. The MSRP is $28,478.
Ford offers a purchase financing plan with no money down and
48 endofmonth payments of $690. Should she buy the car for
