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8002 PDF DEMO:
QUESTION NO: 1
You invest $100 000 for 3 years at a continuously compounded rate of 3%. At the end of 3 years, you redeem the investment. Taxes of 22% are applied at the time of redemption. What is your approximate after-tax profit from the investment, rounded to $10?
A. $9420
B. $7350
C. $7230
D. $7100
Answer: B
QUESTION NO: 2
For each of the following functions, indicate whether its graph is concave or convex:
Y = 7x2 + 3x + 9
Y = 6 ln(3x)
Y = exp(-4x)
A. concave, concave, concave
B. concave, convex, convex
C. convex, concave, concave
D. convex, convex, concave
Answer: C
QUESTION NO: 3
Which of the provided answers solves this system of equations?
2y
3x = 3y +x
y2 + x2 = 68
A. x = 1; y = square root of 67
B. x = 2; y = 8
C. x = 2; y = -8
D. x = -2; y = -8
Answer: C
QUESTION NO: 4
What is the simplest form of this expression: log2(165/2)
A. 10
B. 32
C. 5/2 + log2(16)
D. log2 (5/2) + log2(16)
Answer: A
QUESTION NO: 5
You intend to invest $100 000 for five years. Four different interest payment options are available.
Choose the interest option that yields the highest return over the five year period.
A. a lump-sum payment of $22 500 on maturity (in five years)
B. an annually compounded rate of 4.15%
C. a quarterly-compounded rate of 4.1%
D. a continuously-compounded rate of 4%
Answer: C
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Updated: May 26, 2022