TVM Practice

Flashcard
•
Mathematics
•
11th - 12th Grade
•
Hard
Standards-aligned
Wayground Content
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15 questions
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1.
FLASHCARD QUESTION
Front
What does PV represent in the TVM Solver?
Back
PV stands for Present Value.
Tags
CCSS.8.EE.C.7B
2.
FLASHCARD QUESTION
Front
How do you calculate the down payment for a home listed at $150,000 with a 20% down payment requirement?
Back
Down payment = 20% of $150,000 = $30,000.
Tags
CCSS.6.RP.A.3C
3.
FLASHCARD QUESTION
Front
What is the formula to calculate the future value (FV) of an investment?
Back
FV = PV * (1 + r)^n, where r is the interest rate and n is the number of compounding periods.
4.
FLASHCARD QUESTION
Front
What does N represent in the TVM Solver?
Back
N represents the total number of compounding periods.
Tags
CCSS.8.EE.C.7B
5.
FLASHCARD QUESTION
Front
How do you find the amount earned by an investment after a certain number of years?
Back
Use the formula FV = PV * (1 + r/n)^(nt), where r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years.
6.
FLASHCARD QUESTION
Front
What is the interest rate if $1050 grows to $1291.50 in 4 years with quarterly compounding?
Back
The interest rate is 5.2%.
7.
FLASHCARD QUESTION
Front
What does the term 'compounding' mean in finance?
Back
Compounding refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods.
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