POP Quiz.

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Presentation transcript:

POP Quiz

1. You would like to retire in 40 years as a millionaire, how much should you deposit at the end of each month if the rate of return is 4 percent compounded monthly? A.$684 B.$864 C.$468

2. If your credit card company is offering 24% compounded monthly. What is an Effective Annual Rate? A. 28.94% B. 27.58% C. 26.82%

3. You have $375,000 in an account earning 9 percent compounded annually, what constant amount could you withdraw each year and have nothing remaining at the end of 20 years? A. $41,080 B. $5,575 C. $75,000

4. If you are expected to deposit $8,000 per years one through five and $10,000 per year in year six through ten. If the discount rate is 10 percent, what is the present value of these cash flows? A. $37,907 B. $53,864 C. None of the above.

5. What is the present value of APPLE preferred stock, paid dividend for $5 and the required rate of return is 15 percent? A. $33.33 B. $10 C. $30

Thank you 1. B 2. C 3. A 4. B 5. A