7/23/2020 2.

9 Week Summary and Graded Assessments | Week 2: Time Value of Money | Corporate Finance | edX

IIMBx FC101x
xperiagrapher
Corporate Finance

Course Discussion Progress Syllabus FAQ Notes

Course / Week 2: Time Value of Money / 2.9 Week Summary and Graded Assessments

Previous Next

Graded Assessments
Bookmark this page

Calculator Hide Notes

https://learning.edx.org/course/course-v1:IIMBx+FC101x+2T2020/block-v1:IIMBx+FC101x+2T2020+type@sequential+block@c922d0a6faf941489b4beafc8ba81544/block-v1:IIMBx+FC101x+2T2020+type@vertical+… 1/6
7/23/2020 2.9 Week Summary and Graded Assessments | Week 2: Time Value of Money | Corporate Finance | edX

GRADED ASSESSMENTS

Congratulations! You have completed Week Two of this course. It is time to test your understanding of the concepts
taught in this week. 

In the following unit, you will be provided with 10 questions.

INSTRUCTIONS:
Each question carries 1 point.

You have 1 attempt to answer a question

Graded Question 1
1.0/1.0 point (graded)
The di erence between the compound interest account and the simple interest account is due to the additional
interest earned on interest.

True

False

Submit You have used 1 of 1 attempt

Graded Question 2
1.0/1.0 point (graded)
Consider the case where Annual Percentage Rate (APR) is 15%. If the frequency of compounding is every 3 months,
what will be the value of E ective Annual Rate (EAR)?

15.86%

16.01%

19.55%

74.90%

Submit You have used 1 of 1 attempt

Graded Question 3
Calculator Hide Notes
1 0/1 0 i t( d d)
https://learning.edx.org/course/course-v1:IIMBx+FC101x+2T2020/block-v1:IIMBx+FC101x+2T2020+type@sequential+block@c922d0a6faf941489b4beafc8ba81544/block-v1:IIMBx+FC101x+2T2020+type@vertical+… 2/6
7/23/2020 2.9 Week Summary and Graded Assessments | Week 2: Time Value of Money | Corporate Finance | edX
1.0/1.0 point (graded)
Which of the following represents the future value of Rs. 1,000 invested at 10%, compounded annually, for 10 years ?

Rs. 1100

Rs. 2132.33

Rs. 2488.97

Rs. 2593.74

Submit You have used 1 of 1 attempt

Graded Question 4
1.0/1.0 point (graded)
Which of the statements is correct?

FV of annuity due is greater than FV of regular annuity.

FV of annuity due is less than FV of regular annuity.

FV of annuity due is equal to FV of regular annuity.

There is no relationship between FV of annuity due and FV of regular annuity.

Submit You have used 1 of 1 attempt

Graded Question 5
0.0/1.0 point (graded)
Rs.444 to be received at the end of one year has a present value of Rs.400. What is the one-year discount rate?

9%

11%

12%

None of the above

Submit You have used 1 of 1 attempt

Graded Question 6
0.0/1.0 point (graded)
Mr. Akram wants Rs. 500,000 at the end of 8 years from now. Find the amount to be deposited at the end of each
year, in an account o ering 7% interest compounded annually. (Choose option closest to your calculation. HINT: USE
EXCEL)
Calculator Hide Notes
https://learning.edx.org/course/course-v1:IIMBx+FC101x+2T2020/block-v1:IIMBx+FC101x+2T2020+type@sequential+block@c922d0a6faf941489b4beafc8ba81544/block-v1:IIMBx+FC101x+2T2020+type@vertical+… 3/6
7/23/2020 2.9 Week Summary and Graded Assessments | Week 2: Time Value of Money | Corporate Finance | edX

Rs. 47,334

Rs. 48,734

Rs. 49,833

Rs. 50,122

Submit You have used 1 of 1 attempt

Graded Question 7
1.0/1.0 point (graded)
The discount rate to be used for calculating the present value of a stream of cash ow should be

Bank rate

Prime Lending Rate

Treasury rate

Opportunity cost

Submit You have used 1 of 1 attempt

Graded Question 8
0.0/1.0 point (graded)
You are considering an investment of $ 1500 annually. The rst payment is made now and the last payment is made
at the end of year 3. The annual return on this investment is 3%. What is the future value at the end of year 4 of this
investment?(HINT: It will be useful to draw a timeline.)

$ 2,334

$ 6,222

$ 6,464

$ 10,144

Submit You have used 1 of 1 attempt

Graded Question 9
0.0/1.0 point (graded)
Discounting means:

Converting present value of money into future value.

Calculator Hide Notes
https://learning.edx.org/course/course-v1:IIMBx+FC101x+2T2020/block-v1:IIMBx+FC101x+2T2020+type@sequential+block@c922d0a6faf941489b4beafc8ba81544/block-v1:IIMBx+FC101x+2T2020+type@vertical+… 4/6
7/23/2020 2.9 Week Summary and Graded Assessments | Week 2: Time Value of Money | Corporate Finance | edX

Converting annuity due to regular annuity.

Calculating future value of an annuity.

None of the above.

Submit You have used 1 of 1 attempt

Graded Question 10
1.0/1.0 point (graded)
Milo Corp. wants to accumulate $ 500,000 for a payment that will become due in 5 years. That is , at the end of 5
years it will have to pay this amount. It intends to make a deposit of constant amount every year for the next 5 years,
starting at the end of the rst year. The deposit earns an interest of 8% annually. What is the amount that Milo Corp.
should save every year?

$80,965.0

$78,915.03

$85,228.23

$85,678.09

Submit You have used 1 of 1 attempt

Loading [a11y]/mathjax-sre.js

Previous Next

All Rights Reserved

edX
About
Affiliates
edX for Business
Open edX
Careers
News Calculator Hide Notes
https://learning.edx.org/course/course-v1:IIMBx+FC101x+2T2020/block-v1:IIMBx+FC101x+2T2020+type@sequential+block@c922d0a6faf941489b4beafc8ba81544/block-v1:IIMBx+FC101x+2T2020+type@vertical+… 5/6
7/23/2020 2.9 Week Summary and Graded Assessments | Week 2: Time Value of Money | Corporate Finance | edX

Legal
Terms of Service & Honor Code
Privacy Policy
Accessibility Policy
Trademark Policy
Sitemap

Connect
Blog
Contact Us
Help Center
Media Kit
Donate

© 2020 edX Inc. All rights reserved.

深圳市恒宇博科技有限公司 粤ICP备17044299号-2

Calculator Hide Notes

https://learning.edx.org/course/course-v1:IIMBx+FC101x+2T2020/block-v1:IIMBx+FC101x+2T2020+type@sequential+block@c922d0a6faf941489b4beafc8ba81544/block-v1:IIMBx+FC101x+2T2020+type@vertical+… 6/6