TCU FINANCE EXIT LATEST 2026/2027 ACTUAL EXAM QUESTIONS WITH CORRECT ANSWERS 100% VERIFIED GRADED A+

TCU FINANCE EXIT LATEST 2026/2027
ACTUAL EXAM QUESTIONS WITH
CORRECT ANSWERS 100% VERIFIED
GRADED A+
Ratemofmreturnmyoumcouldmearnmonmanmalternativeminvestmentmofmsimilarmriskm-
mCORRECTmANSWERmOpportunitymCost




FindingmPresentmValuemismcalledm______________,mthemreversemofmcompounding.m-
mCORRECTmANSWERmDiscounting




Ifmpaymentsmaremequalmandmaremmadematmfixedmintervals,mthenmthemseriesmismanm_____________.m
-mCORRECTmANSWERmAnnuity



Ifmpaymentsmoccurmatmthemendmofmeachmperiod,mthenmitmismanm___________________.m-
mCORRECTmANSWERmOrdinarymAnnuity




Mortgages,mcarmloans,mandmstudentmloans.



Whatmtypemofmannuitiesmaremthese?m-mCORRECTmANSWERmOrdinarymAnnuity



Ifmpaymentsmaremmadematmthembeginningmofmeachmperiod,mthenmit'smanm_______________.m-
mCORRECTmANSWERmAnnuitymDue




Rentalmpayments,mlifeminsurance.



Whatmtypemofmannuitiesmaremthese?m-mCORRECTmANSWERmAnnuitymDue

,HowmdomyoumfindmthemFuturemValuemofmanmOrdinarymAnnuitym(END)?m-
mCORRECTmANSWERmFVm=mPMT[((1+r)^nm-m1)/r]




PVm=m0m(formcalculator)



HowmdomyoumfindmthemFuturemValuemofmanmAnnuitymDuem(BEGIN)?m-
mCORRECTmANSWERmPm=m(PMTm[((1m+mr)nm-m1)m/mr])(1m+mr)




True/False:mThemFVmofmanmannuitymduemwillmbemgreatermthanmthatmofmamsimilarmordinarymannuity.m
-mCORRECTmANSWERmTrue



HowmdomyoumfindmthemPresentmValuemofmanmOrdinarymAnnuity?m-
mCORRECTmANSWERmPm=mPMTm[(1m-m(1m/m(1m+mr)n))m/mr]




HowmdomyoumfindmthemPresentmValuemofmanmAnnuitymDue?m-mCORRECTmANSWERmPm=m(PMTm[(1m-
m(1m/m(1m+mr)n))m/mr])mxm(1+r)




True/False:mThemPVmofmanmannuitymduemwillmbemlessmthanmthatmofmamsimilarmordinarymannuity.m-
mCORRECTmANSWERmFalsem(Greatermthan)




Inm1749mthemBritishmgovernmentmissuedmsomembondsmwhosemproceedsmweremusedmtompaymoffmot
hermBritishmbondsmandmsincemthismactionmconsolidatedmthemgovernment'smdebt,mthemnewmbondsm
weremcalledm___________.m-mCORRECTmANSWERmConsols



Promisemtompayminterestmperpetuallym-mCORRECTmANSWERmPerpetuity

, Theminterestmratemthatmismactuallymearnedmormpaidmonmanminvestment,mloan,mormothermfinancialmpr
oductmduemtomthemresultmofmcompoundingmovermamgivenmtimemperiodm-
mCORRECTmANSWERmEffectivemAnnualmRatem(EAR)




WhatmismanothermnamemformEffectivemAnnualmRatem(EAR)?m-
mCORRECTmANSWERmEFF%m(EffectivemPercentage)




CalculationmformEffectivemAnnualmRatem(EAR).m-mCORRECTmANSWERm(1m+mInom/M)^Mm-m1.0



Inom/Mm=mPeriodicmratem

Mm=mnumbermofmperiods



WhenmshouldmEffectivemAnnualmRatembemusedm?m-
mCORRECTmANSWERmShouldmbemusedmtomcomparemthemeffectivemcostmormratemofmreturnmonmloansm


orminvestmentsmwhenmpaymentmperiodsmdiffer



Amloanmthatmismtombemrepaidminmequalmamountsmonmammonthly,mquarterly,mormannualmbasism-
mCORRECTmANSWERmAmortizedmLoan




Eachmpaymentmwillmconsistmofmtwompartsm-minterestmandmrepaymentmofmprincipalm-
mthembreakdownmismshownmonmam__________________________.m-


mCORRECTmANSWERmAmortizationmSchedule




HowmdoesmTimemeffectmpresentmandmfuturemvaluesmofmcashmflows?m-
mCORRECTmANSWERmThemlatermyoumreceivemthempayment,mthemlowermthempresentmvaluemofmthemc


ashmflow



HowmdoesmInterestmRatemeffectmpresentmandmfuturemvaluesmofmcashmflows?m-
mCORRECTmANSWERmThemhighermtheminterestmrate,mthemhighermthemvaluemofmthemcashmflows