Quiz 1 Coursera_Introduction to Finance
You submitted this quiz on Sun 26 Oct 2014 8:17 PM CST. You got a score of 95.00out of 100.00. You can attempt again, if you'd like.
窗体顶端
Please read all questions and instructions carefully. Note that you only need to enter answers in terms of numbers and without any symbols (including $, %, commas, etc.). Enter all monetary answers to the nearest dollar (no decimal/cents) and all interest rates to the nearest on hundredth of a percent (two decimal places). Read the syllabus for examples. The points for each question are listed in parentheses at the start of the question, and the total points for the entire assignment add up to 100.
Question 1
(5 points) $100 today is worth the SAME as $100 tomorrow.
Your Answer Score Explanation
True False Correct 5.00 Correct. You understand time value
Total 5.00 / 5.00 Question ExplanationWe have assumed that time value of money is positive.
Question 2
(5 points) $100 invested for 10 years at 12% interest is worth more in FV terms than $200 invested for 10 years at 4% interest.
Your Answer Score Explanation
True Correct 5.00 Correct. You know the mechanics for calculating FV.
False Total 5.00 / 5.00 Question ExplanationAll about compounding.
Question 3
(5 points) Megan wants to buy a designer handbag and plans to earn the money babysitting. Suppose the interest rate is 6% and she is willing to wait one year to purchase the bag. How much babysitting money (to the nearest whole dollar) will she need to earn today to buy the bag for $400 one year from now? (Enter just the number without the $ sign or a comma)
Answer for Question 3
You entered:
Your Answer Score Explanation
424 Incorrect 0.00 Total 0.00 / 5.00 Question ExplanationSimple PV calculation.
Question 4
(10 points) Jeff has $1,000 that he invests in a safe financial instrument expected to return 3% annually. Marge has $500 and invests in a more risky venture that is expected to return 7% annually. Who has more after 20 years? And how much does
窗体顶端
Please read all questions and instructions carefully. Note that you only need to enter answers in terms of numbers and without any symbols (including $, %, commas, etc.). Enter all monetary answers to the nearest dollar (no decimal/cents) and all interest rates to the nearest on hundredth of a percent (two decimal places). Read the syllabus for examples. The points for each question are listed in parentheses at the start of the question, and the total points for the entire assignment add up to 100.
Question 1
(5 points) $100 today is worth the SAME as $100 tomorrow.
Your Answer Score Explanation
True False Correct 5.00 Correct. You understand time value
Total 5.00 / 5.00 Question ExplanationWe have assumed that time value of money is positive.
Question 2
(5 points) $100 invested for 10 years at 12% interest is worth more in FV terms than $200 invested for 10 years at 4% interest.
Your Answer Score Explanation
True Correct 5.00 Correct. You know the mechanics for calculating FV.
False Total 5.00 / 5.00 Question ExplanationAll about compounding.
Question 3
(5 points) Megan wants to buy a designer handbag and plans to earn the money babysitting. Suppose the interest rate is 6% and she is willing to wait one year to purchase the bag. How much babysitting money (to the nearest whole dollar) will she need to earn today to buy the bag for $400 one year from now? (Enter just the number without the $ sign or a comma)
Answer for Question 3
You entered:
Your Answer Score Explanation
424 Incorrect 0.00 Total 0.00 / 5.00 Question ExplanationSimple PV calculation.
Question 4
(10 points) Jeff has $1,000 that he invests in a safe financial instrument expected to return 3% annually. Marge has $500 and invests in a more risky venture that is expected to return 7% annually. Who has more after 20 years? And how much does