MA 1-170 FINANCIAL MANAGEMENT
QUESTIONS & ANSWERS
, 1. The future value of a $2,000 annuity due deposited at 8 percent compounded annually
for each of the next 10 years is ________.
A.$28,973
B.$14,494
C. $31,291
D. $13,420
C. $31,291
2. How many years would it take for Harry to save an adequate amount for retirement
if he deposits $2,000 per month into an account beginning today that pays 12 percent
per year if he wishes to have a total of $1,000,000 at retirement?
A.12 years
B.13 years
C.16 years (CORRECT ANSWER)
D.15 years
C.
15 years
3. The future value of $100 received today and deposited at 6 percent for four years is
closest to ________.
A. $ 79
D. $126
B.$116
QUESTIONS & ANSWERS
, 1. The future value of a $2,000 annuity due deposited at 8 percent compounded annually
for each of the next 10 years is ________.
A.$28,973
B.$14,494
C. $31,291
D. $13,420
C. $31,291
2. How many years would it take for Harry to save an adequate amount for retirement
if he deposits $2,000 per month into an account beginning today that pays 12 percent
per year if he wishes to have a total of $1,000,000 at retirement?
A.12 years
B.13 years
C.16 years (CORRECT ANSWER)
D.15 years
C.
15 years
3. The future value of $100 received today and deposited at 6 percent for four years is
closest to ________.
A. $ 79
D. $126
B.$116
