FINA 3311 CERTIFICATION PAPER 2026
FULL SOLUTION GRADED A+
● Pure Discount. Answer: Which loan type requires the borrower to
repay a single lump sum payment at some time in the future with
interest?
● $1,661.88. Answer: Suppose a business takes out a $7,000, five-year
loan at 6 percent that will be paid annually with a single, fixed payment
each period. How much will be the annual payment?
● Payments. Answer: The variables in a future value of a lump sum
problem include all of the following, except:
● Decrease the future value.. Answer: How would a decrease in the
interest rate effect the future value of a lump sum, single amount
problem (all other variables remain the same)?
● $2,079. Answer: What is the future value of $1,000 invested for 15
years at a rate of 5%?
● Payments. Answer: The variables in a future value of a lump sum
problem include all of the following, except:
, ● Future Value. Answer: The variable that you are solving for in a
future value of a lump sum problem is:
● $3,849. Answer: What is the future value of $1,200 invested for 20
years at a rate of 6%?
● Risk Profile. Answer: The variables in a present value of an annuity
problem include all of the following, except:
● The Present Value. Answer: The variable that you are solving for in a
present value of an annuity problem is:
● $3,861. Answer: What is the present value of $500 invested each year
for 10 years at a rate of 5%?
● Source of funds. Answer: The variables in a present value of an
annuity problem include all of the following, except:
● Decrease the present value. Answer: How would an increase in the
interest rate effect the present value of an annuity problem (all other
variables remain the same)?
● $3,554. Answer: What is the present value of $400 invested each year
for 12 years at a rate of 6%?
FULL SOLUTION GRADED A+
● Pure Discount. Answer: Which loan type requires the borrower to
repay a single lump sum payment at some time in the future with
interest?
● $1,661.88. Answer: Suppose a business takes out a $7,000, five-year
loan at 6 percent that will be paid annually with a single, fixed payment
each period. How much will be the annual payment?
● Payments. Answer: The variables in a future value of a lump sum
problem include all of the following, except:
● Decrease the future value.. Answer: How would a decrease in the
interest rate effect the future value of a lump sum, single amount
problem (all other variables remain the same)?
● $2,079. Answer: What is the future value of $1,000 invested for 15
years at a rate of 5%?
● Payments. Answer: The variables in a future value of a lump sum
problem include all of the following, except:
, ● Future Value. Answer: The variable that you are solving for in a
future value of a lump sum problem is:
● $3,849. Answer: What is the future value of $1,200 invested for 20
years at a rate of 6%?
● Risk Profile. Answer: The variables in a present value of an annuity
problem include all of the following, except:
● The Present Value. Answer: The variable that you are solving for in a
present value of an annuity problem is:
● $3,861. Answer: What is the present value of $500 invested each year
for 10 years at a rate of 5%?
● Source of funds. Answer: The variables in a present value of an
annuity problem include all of the following, except:
● Decrease the present value. Answer: How would an increase in the
interest rate effect the present value of an annuity problem (all other
variables remain the same)?
● $3,554. Answer: What is the present value of $400 invested each year
for 12 years at a rate of 6%?
