All categories

2 years ago

One primary focus of substantive tests in the finance and investment cycle is on:

1 answer:

3 0

This Finance Test is designed to help you assess your knowledge on important finance concepts, terminology definitions, and frequently used calculations. We strongly encourage any students who are planning or are beginning their FMVA certification program to take this test to determine whether you will need to take the prerequisite finance courses including Reading Financial Statements, Introduction to Corporate Finance, and Math for Corporate Finance. This is also a useful resource for employers to examine the technical knowledge of the candidates during a finance interview.

If you pass this test with 80% or above (16 questions or more), it is likely that you have a strong background in finance and are good to go ahead with our core courses!

Finance Test Questions

1. The concept of present value relates to the idea that*

The discount rate is always higher when you invest now than in the future

The discount rate is always higher when you invest in the future than now

The money you have now is worth less today than an identical amount you would receive in the future

The money you have now is worth more today than an identical amount you would receive in the future

2. The formula for calculating future value (FV) is*

FV = PV/(1+r)^n

FV = PV/(1+r)*n

FV = PV x (1+r)^n

FV = PV x (1+r)*n

You might be interested in

You know that firm XYZ is very poorly run. On a scale of 1 (worst) to 10 (best), you would give it a score of 3. The market cons

e-lub [12.9K]

Full question:

You know that firm XYZ is very poorly run. On a scale of 1 (worst) to 10 (best), you would give it a score of 3. The market consensus evaluation is that the management score is only 2. Should you buy or sell the stock?

A. Buy

B. Sell

Answer:

Buy the stock

Explanation:

At any position in time, the stock price displays all candidly accessible erudition about the company. This implies that an investor can obtain abnormal returns only if that investor holds private erudition about the firm's forecasts.

The firm's administration is not as critical as everyone else considers it to be, hence, the firm is underestimated by the market. You are scarcely hopeless about the firm's probabilities than the assumptions constructed into the stock price. As the administration of the firm is not as weak as anticipated to be. So the investor will determine to buy the stocks of the firm.

3 0

2 years ago

Mark decides to only pay the minimum payment each month of $15 for his credit card. He continues to charge purchases to the cred

sladkih [1.3K]

25 hours max wo0ld take him thagtlong

6 0

2 years ago

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.

Ostrovityanka [42]

Answer:

Depreciation Expense = $16900

Explanation:

Using the units of production method. I will get the value of depreciation expense for the year 2. The units of production method calculate the value of depreciation using the formula is given below.

Depreciation expense = (Cost - Salvage value) / Total Units of Products x Units of production in second year.

Depreciation expense = ($87000 - $7000) / 400000 x 84500 = $16900

Wickland company will charge depreciation expense of $16900 using the Units of production method as during the second year of Wickland company depreciation expense is $16900.

7 0

2 years ago

Current Attempt in Progress Incorrect answer icon Your answer is incorrect. Carla Willis will invest $34,700 today. She needs $1

Nitella [24]

Answer:

12.18%

Explanation:

Present value = $34,700

Future Value = $173,500

Time (n) = 14 years

Interest Rate = i

Future Value = Present Value * (1+i)^n

$173,500 = $34,700 * (1 + i)^14

(1 + i)^14 = $173,500/$34,700

(1 + i)^14 = 5

1 + i = 5^(1/14)

1 + i = 1.1218284

i = 1.1218284 - 1

i = 0.1218284

i = 12.18%

So, the annual interest rate she must earn is 12.18%.

4 0

2 years ago

PLZZZ HELP, i have limited time and i will give brainliest.

Schach [20]

Answer:

Q1. Selena will have earned $ 25.00 in interest by the end of the year.

Since interest paid is 5% in simple interest, we can calculate that by using the formula:

$SI = (P)(r)(t)$

$SI = (500)(0.05)(1) = 25$

Q2. The balance in Suki's account at the end of two years will be $866.2854.

This means that she will have earned $66.2854 in interest.

Since interest is compounded quarterly, Suki will receive interest for 8 periods. The formula for compound interest with more than one interest period per year is:

$\mathbf{A = (P)*(1+(\frac{i}{m})^{n*m}}$