BUSFIN 3500 FINAL EXAM WITH CORRECT ACTUAL QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST ALREADY GRADED A+

BUSFIN 3500 FINAL EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+



BUSFIN 3500 – Final Exam
Questions 1–20: Time Value of Money
1. What is the future value of $1,000 invested at 5% for 3
years?


A. $1,150
B. $1,157.63
C. $1,200
D. $1,250


Answer: B
Explanation:
FV = PV(1 + r)^n = 1000(1.05)^3 = 1157.63

,2. Present value of $500 received in 2 years at 10%?


A. $400
B. $413.22
C. $450
D. $480


Answer: B
Explanation:
PV = 500 / (1.10)^2 = 413.22


3. Increasing compounding frequency will:


A. Decrease FV
B. Increase FV
C. No effect
D. Decrease PV


Answer: B
Explanation:

,More frequent compounding increases total accumulated
value.


4. An annuity is:


A. Single payment
B. Unequal payments
C. Equal periodic payments
D. Random cash flows


Answer: C
Explanation:
Annuity = equal payments over time.


5. Ordinary annuity payments occur:


A. Beginning of period
B. End of period
C. Anytime
D. Random

, Answer: B
Explanation:
Ordinary annuity payments are made at period end.


6. Annuity due payments occur:


A. End
B. Beginning
C. Middle
D. Random


Answer: B
Explanation:
Annuity due = payments at beginning.


7. Effective annual rate (EAR) is:


A. Nominal rate
B. Actual rate after compounding
C. Discount rate
D. Inflation rate