# CEOE Business Education: Personal Investments Chapter Exam

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

### Page 1

#### Question 1 1. Select the statement that is NOT true of property taxes.

#### Question 2 2. The company Walter Spring just gave out dividends of $2.13 per stock. How much did Jimmy get in dividends for his 25 stocks in the company?

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Question 3
3.
Sarah is willing to pay $500 per month for an annuity with an annual interest rate of 6% where the bank pays the interest on a monthly basis. Sarah wants to know how much her annuity will be worth in 5 years.

What is the future value of this annuity after 5 years, to the nearest dollar?

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Question 4
4.
Bob goes to the bank to ask about an annuity. Bob tells the banker that he can put $300 into an annuity every month. The banker tells him he can make monthly interest payments with an annual interest rate of 4%. Bob wants to know the value of his annuity after 20 years, to the nearest dollar.

What is the future value after 20 years?

#### Question 5 5. Select the scenario that produced the largest profit.

### Page 2

#### Question 6 6. An annuity has fixed monthly payments of $400, an annual interest rate of 8%, and a total number of payments over 12 months. What is the present value?

#### Question 7 7. A house has a property tax value of $12,800. What is the appraised value of the house if tax is calculated based on 16 percent of the appraised value?

#### Question 8 8. The present value of an annuity is the worth of an annuity _____.

#### Question 9 9. What is the yield of a bond with a face value of $1000 purchased for $900 with an interest of 8%?

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Question 10
10.
Bob goes to the bank to ask about an annuity. Bob tells the banker that he can put $300 into an annuity every month. The banker tells him he can make monthly interest payments with an annual interest rate of 4%. Bob wants to know the value of his annuity after 20 years.

What is n equal to in this problem?

### Page 3

#### Question 11 11. How is a bond described?

#### Question 12 12. A house has an appraised value of $250,000. The local government has a tax rate of $75 per $1,000 for calculating the property tax. What is the property tax?

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Question 13
13.
Sarah is willing to pay $500 per month for an annuity with an annual interest rate of 6% where the bank pays the interest on a monthly basis. Sarah wants to know how much her annuity will be worth in 5 years.

What is i equal to in this problem?

#### Question 14 14. Which of the following statements is NOT true regarding investment?

#### Question 15 15. What does the P stand for in this formula?

### Page 4

#### Question 16 16. Pinto bought 10 stocks at $13 per stock. He now sells them for $29 per stock. If the brokerage charges $4 per transaction, calculate the amount that Pinto earns.

#### Question 17 17. A bond with a par value of $2,000 and an interest of 5% gets paid what amount of interest annually?

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Question 18
18.
Bob goes to the bank to ask about an annuity. Bob tells the banker that he can put $300 into an annuity every month. The banker tells him he can make monthly interest payments with an annual interest rate of 4%. Bob wants to know the value of his annuity after 20 years.

What is i equal to in this problem?

#### Question 19 19. If a bond pays $40 annually in interest, how much is paid per month in interest?

#### Question 20 20. Dividends are _____.

### Page 5

#### Question 21 21. A house with an appraised value of $750,000 is located in a place with a tax rate of $60 per $5,000. What is the property tax?

#### Question 22 22. When will the yield equal the interest?

#### Question 23 23. Sheeya bought 20 stocks for $4.21 per stock with a brokerage fee of $7 per transaction. How much will she earn by selling them for $15.31 per stock after five years?

#### Question 24 24. Determine the interest rate that you will use in the formula for present value if the annual interest rate is 15% and payments are on a monthly basis.

#### Question 25 25. Calculate the present value of annuity with fixed payments of $500, annual interest rate of 4%, and a total of 3 annual payments.

### Page 6

#### Question 26 26. Stocks are _____.

#### Question 27 27. How much Sarah earn if she sells 10 stocks at $9.23 per stock with a brokerage fee of $7?

#### Question 28 28. How is investment, in economics, related to spending?

#### Question 29 29. What are the main categories of investment?

#### Question 30 30. Company A is giving stockholders dividends of $4 per stock. How much in dividends does Joe get if Joe has 30 preferred stocks in this company?

#### CEOE Business Education: Personal Investments Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!