FINC 3304 Week 4 Quiz

FINC 3304 Week 4  Quiz | Assignment Help | University of Houston-Victoria

Question 1

By definition, a bank that pays simple interest on a savings account will pay interest:                                         

Question 2

You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 6 percent interest. Approximately how long must you wait for your investment to double in value?                                   

Question 3

Martha is investing $5 today at 6 percent interest so she can have $10 later. The $10 is referred to as the:                                   

Question 4

Terry invested $2,000 today in an investment that pays 6.5 percent annual interest. Which one of the following statements is correct, assuming all interest is reinvested?                         

Question 5

Sara is investing $1,000 today. Which one of the following will increase the future value of that amount?                                   

Question 6

Which one of the following is the correct formula for the future value of $500 invested today at 7 percent interest for 8 years?                        

Question 7

Lisa has $1,000 in cash today. Which one of the following investment options is most apt to double her money?                                 

Question 8

Centre Bank pays 2.5 percent interest, compounded annually, on its savings accounts. Country Bank pays 2.5 percent simple interest on its savings accounts. You want to deposit sufficient funds today so that you will have $1,500 in your account 2 years from today. The amount you must deposit today: