Multiple choice questions attached in file. Fifty in total. ATTACHMENT PREVIEW Download attachment Practice problems.odt QUESTION 1 If Sam lends his cousin, Tony, $100 for 9 years at 7% interest compounded annually, how much will his cousin owe him at the end of 8 years? $158.20 $125.90 $157.13 $171.82 QUESTION 2 1 points Aldis received $7,200 from his grandmother as his eighth grade graduation gift. The money is invested at 8% compounded annually and Aldis plans on leaving the money there for 4 years until he is ready to begin college. How much money will Aldis have when he begins college? $9,796 $9,972 $7,992 $7,929 QUESTION 3 1 points When the financial planning problem involves seeking a future value, the periods are referred to as: compounding periods multiple periods discounting periods exponential periods 1 points QUESTION 4 Timea’s RRSP, which currently earns 7%, will be worth $241,000 by her retirement in 10 years time. To the nearest $100, how much does she have in her RRSP today? $124,000. $131,000. $122,500. $120,500. QUESTION 5 1 points All of the following factors must be known in order to calculate the future value of a single sum, EXCEPT: the interest rate to be earned the present value of the sum the amount to be deposited each year the number of years the sum will be left on deposit QUESTION 6 1 points As a birthday gift, Augustino’s godfather invested $5,000 in an account earning 8.75% interest. If the account balance is currently $9,781, for how long has Augustino had the account? 7.8 years 8.0 years 8.2 years 7.9 years 1 points QUESTION 7 Zena wants to buy a sound system that costs $2,322. She plans to finance the purchase by investing $1,800 in an account earning 8.5% annual interest. If she does this, approximately how many years will it take for her account to be worth $2,322? 2.98 years 3.12 years 3.00 years 2.93 years 1 points QUESTION 8 Miguel de la Vega wants to give his son $25,000 upon completion of his college education. If he invests $10,000 now in an account earning 6.375% annual interest, approximately how many years will it take for him to achieve his goal? 14.37 years 15.71 years 15.02 years 14.83 years 1 points QUESTION 9 All of the following are examples of ordinary annuities, EXCEPT: mortgage note payments quarterly dividends semiannual interest payments insurance policy premiums QUESTION 10 1 points What would it cost Charlotte to purchase an ordinary annuity of $200 per year for the next 4 years, if the interest rate is 7% annually? $652.58 $677.44 $687.98 $662.16 QUESTION 11 1 points Sven Gali’s father had given him a choice; he may receive either $2,000 at the end of each year for the next 5 years, or one lump sum today. If Sven’s annual opportunity cost is 9%, what lump sum would be equivalent to the five payments? $8,177 $7,977 $8,479 $7,779 QUESTION 12 All of the following are characteristics of an annuity due, EXCEPT: the present value of an annuity due is always less than the present value of an ordinary annuity the compounding process begins as soon as the dollar is received it is more 1 points advantageous to receive a dollar at the beginning of the period annuity due payments always fall at the beginning of the period QUESTION 13 1 points Edna and Seemor plan to invest $4,000 at the end of each year in an RRSP earning 11.875% annual interest. What will be the value of the account in 12 years? $95,802 $107,178 $93,116 $97,204 1 points QUESTION 14 All of the following statements about the characteristics of the future value of an ordinary annuity are true, EXCEPT: for a given number of compounding periods, if the interest rate increases, the future value increases future value increases as the interest rate increases for any given interest rate, as the number of periods increases, the future value of the ordinary annuity increases there is one period of compounding on the last payment 1 points QUESTION 15 Chad borrows $10,000 for a 5-year term to finance a new boat. He is pay