FIN 2100 Final Exam – UCF Study
Guide Questions with All Actual
Answers 2025-2026 Updated.
B - Answer What is the present value of $12,000 received in 5 years from now, assuming
quarterly compounding at a 7% interest rate?
A. 12,581.19
B. 8,481.89
C. 4,478.45
D. 0
A - Answer Assume you receive $1,200 for 10 years at the end of each year. What is the
present value of this annuity assuming a 10% interest rate?
A. 7,373.48
B. 8,481.45
C. 7,196.20
D. 6,963.47
C - Answer What is the future value of $500 today invested at a 5% interest rate,
compounded daily for 12 years?
A. 458.12
B. 874.20
C. 911.02
D. 902.11
D - Answer What is the future value of $350 invested at the end of each month for 30 years
assuming a 9% interest rate?
A. 850,145.85
B. 604,067.22
C. 730,002.45
D. 640,760.22
,T - Answer T/F: In the event of a dispute, the written terms of the signed sales agreement
will prevail.
T - Answer T/F: You should always find your cheapest source for financing for a car prior to
actually visiting a car dealer to shop for cars.
F - Answer T/F: Service warranty contracts are generally considered good deals.
A - Answer What is the implicit rate of interest in the following "zero percent financing"
deal:New car cost = $20,000 with 36 months of payments at 0% interest OR Receive a $2,000
cash rebate (i.e. pay $18,000) and either pay cash or provide your own financing?
A. 6.97
B. 7.52
C. 6.23
D. 5.14
C - Answer What does PITI stand for?
A. payments into tax interest
B. principal interest tax indicator
C. principal and interest
D. none of the above
E - Answer Which of these four items are "escrowed" each month?
A. principal paid to mortgage companies
B. homeowners insurance
C. property taxes
D. interest payments to mortgage companies
E. both B & C are correct
F. both A & D are correct
E - Answer Rank the following from most expensive health plan to least expensive.
POS, PPO, HMO
,A. PPO, HMO, POS
B. POS, PPO, HMO
C. HMO, PPO, POS
D. HMO, POS, PPO
E. PPO, POS, HMO
F. POS, HMO, PPO
A - Answer What do each of these numbers represent in an auto insurance policy:
100/300/50
A. 100,000 is the maximum that would be paid to one individual in an accident
300,000 is the maximum that would be paid for all claims in a single accident (incident)
50,000 is the maximum property damage that would be paid for an accident
B. 100,000 is the maximum property damage that would be paid for an accident
300,000 is the maximum that would be paid for all claims in a single accident (incident)
50,000 is the maximum that would be paid to one individual in an accident
C. 100,000 is the maximum that would be paid for all claims in a single accident (incident)
300,000 is the maximum that would be paid to one individual in an accident
50,000 is the maximum property damage that would be paid for an accident
D. none of the above
D - Answer Which of the following life insurance policies does not build "Cash value"?
A. whole life
B. variable life
C. universal life
D. term life
E. all of the above
F - Answer T/F: Real estate agent commissions are generally paid by the buyer.
, T - Answer T/F: The recent trend is for the federal government and corporations to shift
more responsibility to the individual with respect to providing for their financial future.
C - Answer Assume you bought a 5 year certificate of deposit (CD) last year which pays 5%. If
you decide to cash out of your CD before 5 years, then the bank will impose a severe penalty by
reducing the interest you receive. Assume today you could buy a 5 year CD and receive 7% due
to rising interest rates. You wish to cash out of your 5% CD and invest at a higher rate, but the
penalty is too severe. This situation is an example of ___________ risk.
A. diversified
B. safe
C. liquididty
D. asset
B - Answer Assume the following:
Pre-tax return = 8%
Tax rate = 25%
Inflation rate = 3%
What is your real return?
A. 17%
B. 3%
C. 22%
D. 5%
E. 8%
D - Answer Recently, the highest unemployment rates have been for:
A. individuals with a college degree
B. individuals with some form of certification
C. individuals with a high school diploma or GED equivalence
D. individuals who did not complete high school
Guide Questions with All Actual
Answers 2025-2026 Updated.
B - Answer What is the present value of $12,000 received in 5 years from now, assuming
quarterly compounding at a 7% interest rate?
A. 12,581.19
B. 8,481.89
C. 4,478.45
D. 0
A - Answer Assume you receive $1,200 for 10 years at the end of each year. What is the
present value of this annuity assuming a 10% interest rate?
A. 7,373.48
B. 8,481.45
C. 7,196.20
D. 6,963.47
C - Answer What is the future value of $500 today invested at a 5% interest rate,
compounded daily for 12 years?
A. 458.12
B. 874.20
C. 911.02
D. 902.11
D - Answer What is the future value of $350 invested at the end of each month for 30 years
assuming a 9% interest rate?
A. 850,145.85
B. 604,067.22
C. 730,002.45
D. 640,760.22
,T - Answer T/F: In the event of a dispute, the written terms of the signed sales agreement
will prevail.
T - Answer T/F: You should always find your cheapest source for financing for a car prior to
actually visiting a car dealer to shop for cars.
F - Answer T/F: Service warranty contracts are generally considered good deals.
A - Answer What is the implicit rate of interest in the following "zero percent financing"
deal:New car cost = $20,000 with 36 months of payments at 0% interest OR Receive a $2,000
cash rebate (i.e. pay $18,000) and either pay cash or provide your own financing?
A. 6.97
B. 7.52
C. 6.23
D. 5.14
C - Answer What does PITI stand for?
A. payments into tax interest
B. principal interest tax indicator
C. principal and interest
D. none of the above
E - Answer Which of these four items are "escrowed" each month?
A. principal paid to mortgage companies
B. homeowners insurance
C. property taxes
D. interest payments to mortgage companies
E. both B & C are correct
F. both A & D are correct
E - Answer Rank the following from most expensive health plan to least expensive.
POS, PPO, HMO
,A. PPO, HMO, POS
B. POS, PPO, HMO
C. HMO, PPO, POS
D. HMO, POS, PPO
E. PPO, POS, HMO
F. POS, HMO, PPO
A - Answer What do each of these numbers represent in an auto insurance policy:
100/300/50
A. 100,000 is the maximum that would be paid to one individual in an accident
300,000 is the maximum that would be paid for all claims in a single accident (incident)
50,000 is the maximum property damage that would be paid for an accident
B. 100,000 is the maximum property damage that would be paid for an accident
300,000 is the maximum that would be paid for all claims in a single accident (incident)
50,000 is the maximum that would be paid to one individual in an accident
C. 100,000 is the maximum that would be paid for all claims in a single accident (incident)
300,000 is the maximum that would be paid to one individual in an accident
50,000 is the maximum property damage that would be paid for an accident
D. none of the above
D - Answer Which of the following life insurance policies does not build "Cash value"?
A. whole life
B. variable life
C. universal life
D. term life
E. all of the above
F - Answer T/F: Real estate agent commissions are generally paid by the buyer.
, T - Answer T/F: The recent trend is for the federal government and corporations to shift
more responsibility to the individual with respect to providing for their financial future.
C - Answer Assume you bought a 5 year certificate of deposit (CD) last year which pays 5%. If
you decide to cash out of your CD before 5 years, then the bank will impose a severe penalty by
reducing the interest you receive. Assume today you could buy a 5 year CD and receive 7% due
to rising interest rates. You wish to cash out of your 5% CD and invest at a higher rate, but the
penalty is too severe. This situation is an example of ___________ risk.
A. diversified
B. safe
C. liquididty
D. asset
B - Answer Assume the following:
Pre-tax return = 8%
Tax rate = 25%
Inflation rate = 3%
What is your real return?
A. 17%
B. 3%
C. 22%
D. 5%
E. 8%
D - Answer Recently, the highest unemployment rates have been for:
A. individuals with a college degree
B. individuals with some form of certification
C. individuals with a high school diploma or GED equivalence
D. individuals who did not complete high school
