Exam 2

Find the net present value (NPV) of a project that requires an initial investment of $100,000 and provides cash flows of $14,000 per year for 12 years? The investor's required return is 11%.

-9,107.01

What is the monthly loan payment on a 15 year, $200,000 loan at 5.00%?

1,581.59

If you want to have $1,500 in two years, how much money should you deposit today if you can earn 5% per year?

1360.54

What is the IRR of $5,000 year one, $3,000 year 2 and $8,000 year 3, assuming an initial purchase price of $12,000 and discount rate of 9.75%?

14.43

What is the future value of $4,900 deposited each year for 4 years in an account earning 6% per year?

21,435.62

What is the NPV of $50,000 year one, $30,000 year 2 and $80,000 year 3, assuming an initial purchase price of $120,000 and discount rate of 5.75%?

21,754.66

What is the payment on a 72 month, 0% car loan for $20,000?

277.78

Given a $200,000 loan, monthly payments, 30 years at 3.75%, how much interest is paid over the first 60 months?

35,728.50

What is the APR of $200,000, 30 year loan (monthly payments) at 4% plus two points?

4.17

What is the payment on a 36 month, 2.99% car loan for $15,000?

436.15

What is the monthly loan payment on a 30 year, $100,000 loan at 4.25%?

491.94

What is the future value of $4,900 deposited today and kept in an account for 3 years earning 6% per year?

5,835.98

If you want to have $1,500 in two years, how much money should you deposit each month if you can earn 5% per year (assume monthly compounding)?

59.56

What is the future value of $4,900 deposited each year for 14 years in an account earning 2% per year?

78272.30

Find the internal rate of return (IRR) of a project that requires an initial investment of $110,000 and provides cash flows of $13,500 per year for 15 years? The investor's required return is 18.5%.

8.82

What is the payment on a 72 month, 1.99% car loan for $60,000?

884.76

Find the internal rate of return (IRR) of a project that requires an initial investment of $100,000 and provides cash flows of $14,000 per year for 12 years? The investor's required return is 11%.

9.05

Given a $200,000 loan, monthly payments, 30 years at 3.75%, how much interest is paid over the life of the loan, assuming no prepayment?

??

If discount points were paid in order to get a lower interest rate, paying the loan off early will serve to decrease the APR.

False

If the NPV is negative the IRR will be ___________ the discount rate. greater than less than equal to unrelated to

less than