PFP quiz ch2

Time Value of money basically refers to

• Amount of money now will change comparatively in the future

• The amount of money will double in the future

• The amount of money will depreciate

• The amount of money will appreciate

Individuals rather prefer which consumption

• Future Consumption

• Current Consumption

• Past Consumption

• Adjacent Consumption

The future value of an annuity formula is used to calculate ____

• what the value at a future date would be for a series of periodic payments.

• what the value would be in future for a single payment

• what the current value appreciation would be

• what the payments are going to be for the future

what formula is this

• future money investment portfolio

• Present Value of a Series of Investments

• Present Value of a Series of Cash Flows

• Portfolio Management Criteria

: The value of bonds or debentures is, generally, determined through the technique known as the

• Debt Calculation

  Technique

• Capitalization technique

• Debt collection technique

• Debt valuation technique

In compound value concept, the interest earned on the initial principal amount becomes

• the opportunity cost

• a part of the investment throughout the period

• a part of the savings account of the person

• a part of the principal at the end of a compounding period.

An investor investing money in installments may wish to know the value of his savings after ‘n’ years. This is known as

• future money achievements

• future values of stock investment

• future value of series of cash flows.

• Portfolio value of series of net investment

what is Annuity

• the no. of years

• a stream of equal annual cash flows

• the number of interest accrued over the year

• the principle amount accrued over the year