GEB 3006 Final Exam and Already
Passed Solutions 2025-2026 Updated.
28 years ago, ET: The Extra-Terrestrial generated $435,110,554 in ticket sales. What is the
equivalent ticket sales figure in today's dollars (assume a 3% inflation factor compounded
annually). - Answer $995,501,478.50
What is the present value of $6,700 received 14 years from now using a 11% interest or
discount rate, with interest compounded quarterly? - Answer $1,466.53
What is the future value of $2,500 deposited at the end of each quarter year for 15 years
earning 8% interest? - Answer $285,128.85
What is the present value of $19,350 deposited at the beginning of each year for 35 years
earning 12.5% interest? - Answer $171,327.82
What is the monthly house payment on a 15 year $225,000 mortgage at 6.5% annual interest? -
Answer $1,959.99
If you have $5,000 today, and save $1,500 per month at the beginning of the month while
earning an annual interest rate of 5.5%, how many months would it take to accumulate
$1,000,000? - Answer 302
Assume the following information for a car note:
Original loan amount = $22,000 Annual interest rate = 6.90% Term of loan = 48 months
For year two, how much interest and principal was paid, and what is the balance due at the end
of year two? - Answer $5,298.36 of principal; $1,011.24 of interest; balance due $11,755.56
What is the Net Present Value (NPV) and internal rate of return (IRR) of spending $550 today on
an energy efficient appliance which will save you $125 a year for the next five years assuming
you could invest this money elsewhere and earn 15%? - Answer NPV = ($130.98); IRR = 4.4%
If you have a $175,000 mortgage with a $1,000.00 monthly payment, payable over 30 years,
what interest rate are you paying? - Answer 5.6%
, You plan to buy some undeveloped land that should sell for $126,000 in ten years. What is the
most you can pay to ensure a 18% annual return? - Answer $24,074
Today, Warren Buffet and Bill Gates have net worths of about $50 billion. 73 years ago, John D.
Rockefeller was worth $1.4 billion. What would his net worth be today, assuming that
Rockefeller could grow his wealth at an average of 7% per year (use annual compounding)? -
Answer $195.5 billion
What is the present value of $9,300 received 10 years from now using a 7% interest or discount
rate, with interest compounded daily? - Answer $4,618.55
You plan to save $250/month using your employer's 401-K plan. What is the future value of
$250 deposited at the end of each month for 30 years earning 11% interest? - Answer
$701,129.93
What is the present value of $125 deposited at the end of each month for 20 years earning 4%
interest? - Answer $20,627.73
What is the monthly house payment on a 30 year $150,000 mortgage at 5.25% annual interest?
- Answer $828.31
If you have $275,000 saved for retirement, how many years will it last if you earn an annual
interest rate of 5.25% and withdraw $17,000 at the end of each year? - Answer 37
Assume the following information for a car note:
Original loan amount = $29,000 Annual interest rate = 5.25% Term of loan = 60 months
How much principal and interest was paid in year four, and what is the principal balance on the
loan after four years? - Answer $6,095.14 of principal; $511.94 of interest; balance due
$6,423.19
What is the Net Present Value (NPV) and internal rate of return (IRR) of spending $250,000
today on medical school when you earn $70,000/year today and will earn $100,000/year for the
next 35 years after med school. Assume you could invest this money elsewhere and earn 15%? -
Answer NPV = ($51,501.78); IRR = 11.8%
What is the effective interest rate assuming the following:
Annual rate = 12.5%
Passed Solutions 2025-2026 Updated.
28 years ago, ET: The Extra-Terrestrial generated $435,110,554 in ticket sales. What is the
equivalent ticket sales figure in today's dollars (assume a 3% inflation factor compounded
annually). - Answer $995,501,478.50
What is the present value of $6,700 received 14 years from now using a 11% interest or
discount rate, with interest compounded quarterly? - Answer $1,466.53
What is the future value of $2,500 deposited at the end of each quarter year for 15 years
earning 8% interest? - Answer $285,128.85
What is the present value of $19,350 deposited at the beginning of each year for 35 years
earning 12.5% interest? - Answer $171,327.82
What is the monthly house payment on a 15 year $225,000 mortgage at 6.5% annual interest? -
Answer $1,959.99
If you have $5,000 today, and save $1,500 per month at the beginning of the month while
earning an annual interest rate of 5.5%, how many months would it take to accumulate
$1,000,000? - Answer 302
Assume the following information for a car note:
Original loan amount = $22,000 Annual interest rate = 6.90% Term of loan = 48 months
For year two, how much interest and principal was paid, and what is the balance due at the end
of year two? - Answer $5,298.36 of principal; $1,011.24 of interest; balance due $11,755.56
What is the Net Present Value (NPV) and internal rate of return (IRR) of spending $550 today on
an energy efficient appliance which will save you $125 a year for the next five years assuming
you could invest this money elsewhere and earn 15%? - Answer NPV = ($130.98); IRR = 4.4%
If you have a $175,000 mortgage with a $1,000.00 monthly payment, payable over 30 years,
what interest rate are you paying? - Answer 5.6%
, You plan to buy some undeveloped land that should sell for $126,000 in ten years. What is the
most you can pay to ensure a 18% annual return? - Answer $24,074
Today, Warren Buffet and Bill Gates have net worths of about $50 billion. 73 years ago, John D.
Rockefeller was worth $1.4 billion. What would his net worth be today, assuming that
Rockefeller could grow his wealth at an average of 7% per year (use annual compounding)? -
Answer $195.5 billion
What is the present value of $9,300 received 10 years from now using a 7% interest or discount
rate, with interest compounded daily? - Answer $4,618.55
You plan to save $250/month using your employer's 401-K plan. What is the future value of
$250 deposited at the end of each month for 30 years earning 11% interest? - Answer
$701,129.93
What is the present value of $125 deposited at the end of each month for 20 years earning 4%
interest? - Answer $20,627.73
What is the monthly house payment on a 30 year $150,000 mortgage at 5.25% annual interest?
- Answer $828.31
If you have $275,000 saved for retirement, how many years will it last if you earn an annual
interest rate of 5.25% and withdraw $17,000 at the end of each year? - Answer 37
Assume the following information for a car note:
Original loan amount = $29,000 Annual interest rate = 5.25% Term of loan = 60 months
How much principal and interest was paid in year four, and what is the principal balance on the
loan after four years? - Answer $6,095.14 of principal; $511.94 of interest; balance due
$6,423.19
What is the Net Present Value (NPV) and internal rate of return (IRR) of spending $250,000
today on medical school when you earn $70,000/year today and will earn $100,000/year for the
next 35 years after med school. Assume you could invest this money elsewhere and earn 15%? -
Answer NPV = ($51,501.78); IRR = 11.8%
What is the effective interest rate assuming the following:
Annual rate = 12.5%
