Global Financial Markets and Instruments Coursera Answer

In this blog you will find the correct answer of the Coursera quiz Global Financial Markets and Instruments Coursera Answer mixsaver always try to brings best blogs and best coupon codes

Review of Elementary Finance Tools Part 1

1. If you invest $5000 in a CD with an interest rate of 8% per year, how much will you have at the end of 5 years? Round off your final answer to two digits after the decimal point. State your answer as “x.xx'”

Enter answer here

7346.64

2. What is the present value of $100,000 paid at the end of ten years, if your opportunity cost is 5 percent per year? Round off your final answer to three digits after the decimal point. State your answer as “x.xxx’

Enter answer here

61391.325

3. If the annual interest rate is 4 percent, which one would you prefer?

Receive $18,000 one year from now?
Receive $23,000 two years from now?
Receive $25,000 three years from now?

4. If your goal is to maximize your investment value at the end of five years, which option would you prefer?

Investing $9,000 today at an interest rate of 3 percent per year
Investing $8,000 today at an interest rate of 5 percent per year
Investing $9000 today at an interest rate of 2 percent per year for two years and then at an interest rate of 4 percent per year for the last three years

Review of Elementary Finance Tools Part 2

1. Which one would you prefer?

a. Receive $10,000 now

b. Receive $1,000 every year for 13 years (the last payment occurs at the end of 13 years), if the interest rate is 4 percent per year.

Receive $10,000 now
Receive $1,000 every year for 13 years (the last payment occurs at the end of 13 years), if the annual interest rate is 4%

2. How much would you have saved in twenty years if you save $5000 every year and can guarantee earning 6% per year? Round your final answer to three digits after the decimal. State your answer as ‘x.xxx’

Enter answer here

183927.956

3. You are buying a new car. The car dealer gives you three financing options. If your objective is to minimize the present value of your car payments and your opportunity cost of capital is 0.5% per month, which one would you choose?

$500 per month for 36 months
$600 per month for 24 months
$350 per month for 48 months

4. You are buying a new house for $450,000. Reviewing different financing options, you have determined that you would like to minimize your monthly payment. Which financing option would you choose? Assume monthly payments over the life of the mortgage.

30 year mortgage with annual interest rate of 3.5 percent
20 year mortgage with an annual interest rate of 3 percent
15 year mortgage with an annual interest rate of 2.8 percent

Review of Elementary Finance Tools Part 3

1. True or False:

An annual interest rate quoted at 6 percent compounded monthly means interest is paid at a rate of 6% each month.

True
False

2. What is the effective annual rate on 1 –year CD with a stated annual rate of 8% compounded quarterly? Round off your final answer to three digits after the decimal point. State your answer as a percentage ‘x.xxx’ (i.e. 1.234)

Enter answer here

8.243

3. What is the effective six-month rate if the stated annual rate is 8% compounded quarterly? Round off your final answer to two digits after the decimal point. State your answer as as percentage ‘x.xx’ (i.e. 1.23)

Enter answer here

4.04

4. What is the effective six-month rate if the stated annual rate is 8% compounded monthly? Round off your final answer to three digits after the decimal point. State your answer as a percentage ‘x.xxx’ (i.e. 1.234)

Enter answer here

4.067

5. What is the five-year effective rate if the stated annual rate is 6% compounded semi-annually? Round off your final answer to three digits after the decimal point. State your answer as a percentage rate ‘x.xxx’ (i.e. 1.234)

Enter answer here

34.392

6. Which one would you prefer as an investment return?

A stated annual rate of return of 6%, compounded monthly
A stated annual rate of return of 7%, compounded quarterly
A stated annual rate of return of 6.5%, compounded semi-annually
A three-month rate of 2%, compounded quarterly

7. What is the effective 3-month return on a 1-year certificate of deposit with a stated annual rate of 8% compounded quarterly?

2%
2.67%
4.63%
4.04%

Review of Elementary Finance Tools Part 4

1. How much would you be willing to pay today for the opportunity to receive $10,000 every year forever if the interest rate is 5% per year? (Assume you can bequest it to someone else). Round your final answer to the nearest dollar.

Enter answer here

200000

2. How much would you be willing to pay today for the opportunity to receive $1000 every month forever if the interest rate is 5% per year? (Assume you can bequest it to someone else). Round off your final answer to the nearest dollar.

Enter answer here

240000

3. How much would you have to donate to your alma mater so that a scholarship of $2000 that grows at an annual rate of 2% can be created in your name one year from today if your endowment can be invested at an annual rate of 4%? Round off your answer to the nearest dollar.

Enter answer here

100000

4. Which one would you prefer if your opportunity cost of capital is 6 percent per year?

Receiving $150,000 today
Receiving $100,000 today and a stream of cash flows every month for the next 36 months starting next month with $1250 every month and growing by 0.125% every month
Receiving $750 every month forever starting today
Receiving $25000 today and a stream of cash flows every month forever starting with $500 next month growing by 0.125%

Module 1: Review of Elementary Finance Tools

1. Bob and Jane Loveboat are saving to buy a boat at the end of 5 years. If the boat costs $25,000, and they can earn 8 percent a year on their savings, how much do they need to put aside at the end of every year 1 through 5? Round off your final answer to three digits after the decimal point. State your answer as ‘x.xxx’

Enter answer here

4261.411

2. You made your fortune in the dot-com boom (and got out in time!) As part of your legacy, you would like to endow an annual scholarship at your alma mater. You want it to be memorable, so you would like the scholarship to be $20,000 per year. If the university earns 8% on its investments, and if the first scholarship is to be given out in one year’s time, how much will you need to donate to create the scholarship fund? Round your final answer to the nearest dollar.

Enter answer here

250000

3. Assuming that the annual interest rate is 7%, how much would you pay to receive $100 every year, growing at 5%, annually, forever? Round off your final answer to the nearest dollar.

Enter answer here

5000

4. What is the future value three years from now of $1000 invested in an account with a stated annual interest rate of 8%, if compounded semi-annually? Round off your final answer to three digits after the decimal. State your answer as ‘x.xxx’

Enter answer here

1265.319

5. What is the future value three years from now of $1000 invested in an account with a stated annual interest rate of 8%, if compounded monthly? Round off your final answer to three digits after the decimal point State your answer as ‘x.xxx’

Enter answer here

1270.237

6. You want to lease a set of golf clubs from Holes, Ltd. The lease contract is in the form of 24 equal monthly payments at a 12 percent, compounded monthly. Since the clubs cost $4,000 retail, Holes wants the present value of the lease payments to equal $4,000. Suppose you first payment is due immediately. What will your monthly lease payment be? Round off your final answer to one digit after the decimal point. State your answer as ‘x.x’

Enter answer here

186.4

7. You want to retire a millionaire when you are 65. Currently, you have $20,000 in savings and are 30 years old. How much will you have to save each year for the next 35 years in order to have $1,000,000? Assume you earn 9% on your savings every year. Round off your final answer to three digits after the decimal point. State your answer as ‘x.xxx’

Enter answer here

2743.121

8. You decide to buy a home for $100,000. You approach two banks for financing. If you want to minimize your monthly payments, which one would you choose?

Bank #1 requires a 10% down payment and requires monthly payments on a 20-year mortgage sufficient to earn it an effective annual return of 8%.
Bank #2 also needs a 10% down payment and also has a 20-year mortgage, but quotes a 8% annual rate which is compounded monthly.

9. Leeds Autos has just announced its new promotional deal on the new $45,000 Z4 Roadster. You pay $5,000 down, and then $1000 for the next 40 months. Its next door competitor, Chatham Hill Autos will give you a $3000 off the list price straight away. If the interest rate is 6% a year, which company is giving a better deal?

Leeds Autos
Chatham Hill Autos

10. Your parents make you the following offer: They will give you $5000 at the end of every six months for the next five years if you agree to pay them back $5000 at the end of every six months for the following ten years. Should you accept this offer if your opportunity cost of funds is 18% per year, compounded semiannually?