Time Value of Money

What is TVM stands for in this topic?

• Time Value Money

• Time Value of Money

• Time Value the Money

• Time Values of Money

Money available now is worth more than the identical sum in the future due to...

• Time

• Interest

• Potential Earning Capacity

• Profit

What are the keywords for TVM?

• • - Present Value, PV

  • - Future Value, FV

  • - Number of years, n

  • - Interest rate, i

• • - Point Value, PV

  • - Future Value, FV

  • - Number of months, n

  • - Interest, i

• • - Present Value, PV

  • - Finite Value, FV

  • - Number of months, n

  • - Interest, i

• • - Point Value, PV

  • - Finite Value, FV

  • - Number of years, n

  • - Interest rate, i

Simple interest is calculated based on the principal amount only.

• True

• False

Interest will earn interest in

• Simple interest

• Simple compound interest

• Compound interest

Ali deposit RM5000 in the a bank at 7 percent yearly starting from 2023. At 2033, the total amount in his saving account is 9836.

Identify PV.

• 7

• 5000

• 10

• 9836

Ali deposit RM5000 in the a bank at 7 percent yearly starting from 2023. At 2033, the total amount in his saving account is 9836.

Identify FV.

• 5000

• 9836

• 7

• 10

Ali deposit RM5000 in the a bank at 7 percent yearly starting from 2023. At 2033, the total amount in his saving account is 9836.

Identify i (%).

• 7

• 5000

• 10

• 9836

Ali deposit RM5000 in the a bank at 7 percent yearly starting from 2023. At 2033, the total amount in his saving account is 9836.

Identify n.

• 9836

• 7

• 5000

• 10

Which is(are) annuity?

• Aaron deposit RM100 monthly into the bank.

• Madam Lim receive her pension payment every month at RM500.

• Elex pay his insurance yearly at RM2000.

• Amar withdraw RM300 from his saving account.