Time Value of Money Quiz

What is the present value of $1000 to be received after 5 years, assuming a discount rate of 10%?

• $500.00

• $800.00

• $620.92

• $1200.00

Calculate the future value of $5000 invested at an annual interest rate of 8% for 10 years.

• 6000.00

• 8000.00

• 10000.00

• 10794.63

If the present value of an investment is $2000 and the future value is $3000, what is the rate of return?

• 0.5

• 1.5

• 0.75

• 0.25

What is the present value of $5000 to be received after 3 years, assuming a discount rate of 6%?

• 4000

• 4500

• 4800

• 4197.97

Calculate the future value of $2000 invested at an annual interest rate of 5% for 7 years.

• $2400.70

• $2100.50

• 2805.10

• $2700.90

If the present value of an investment is $500 and the future value is $800, what is the time period?

• Cannot be determined

• 3 years

• 2 years

• 1 year

What is the present value of $3000 to be received after 4 years, assuming a discount rate of 12%?

• $2500.00

• $3200.00

• $2800.00

• 2123.56

Calculate the future value of $10000 invested at an annual interest rate of 6% for 15 years.

• 15000

• 18000

• 19980

• 22000

If the present value of an investment is $1000 and the future value is $1500, what is the rate of return?

• 0.5

• 0.25

• 0.75

• 1.0

What is the present value of $4000 to be received after 2 years, assuming a discount rate of 8%?

• $3200.00

• $4200.00

• $3800.00

• $3488.84