Time Value of Money Quiz

What is the present value of $1000 to be received in 5 years at an interest rate of 8%?

• The present value is $500.00

• The present value is $680.58

• The present value is $800.00

• The present value is $1000.00

Calculate the future value of $5000 invested for 10 years at an interest rate of 6%.

• The future value is $7000.

• The future value is $6000.

• The future value is $8000.

• The future value is $8954.94.

What is the present value of an annuity of $2000 to be received at the end of each year for 5 years, with an interest rate of 10%?

• The present value of the annuity is $10,000.

• The present value of the annuity is $2,000.

• The present value of the annuity is $8,530.96.

• The present value of the annuity is $5,000.

If the future value of an investment is $8000 and the interest rate is 5%, what is the present value of the investment?

• 7619.05

• 9000

• 10000

• 5000

Calculate the future value of an annuity of $3000 to be received at the end of each year for 8 years, with an interest rate of 7%.

• The future value of the annuity is $30,051.48.

• The future value of the annuity is $32,000.

• The future value of the annuity is $25,000.

• The future value of the annuity is $28,500.

What is the present value of $1500 to be received in 3 years at an interest rate of 9%?

• The present value is $1123.60

• The present value is $1500

• The present value is $1000

• The present value is $2000

If the present value of an investment is $4000 and the interest rate is 4%, what is the future value of the investment?

• $4100

• $4200

• $3900

• $4160

Calculate the future value of $2500 invested for 6 years at an interest rate of 8%.

• The future value is $4045.92.

• The future value is $3500.

• The future value is $2000.

• The future value is $3000.

What is the present value of an annuity of $1000 to be received at the end of each year for 4 years, with an interest rate of 12%?

• The present value of the annuity is $4,000

• The present value of the annuity is $3,037.90

• The present value of the annuity is $2,500

• The present value of the annuity is $3,500

If the future value of an investment is $6000 and the interest rate is 6%, what is the present value of the investment?

• Present Value = $6000 / (1 + 0.06) = $5660.38

• Present Value = $6000 / (1 + 0.06) = $5800

• Present Value = $6000 / (1 + 0.06) = $5500

• Present Value = $6000 / (1 + 0.06) = $5000