Quiz Present Value of money

What is the "Present Value" of money?

• The amount of money you have right now.

• The amount of money you will have in the future.

• The amount of money you had in the past.

What does "Future Value" mean?

• The amount of money you have right now.

• The amount of money you will have in the future.

• The amount of money you had in the past.

If you save $1 every day, what is this an example of?

• Annuity

• Perpetuity

• Payback Period

What is a "Payback Period"?

• The time it takes to get your money back after spending it.

• The time it takes to save money.

• The time it takes to spend money.

What is an "Annuity"?

• A one-time payment.

• Regular payments over time.

• A payment that never ends.

What is a "Perpetuity"?

• A payment that never ends.

• A one-time payment.

• Regular payments over time.

If you receive $5 every year forever, what is this called?

• Annuity

• Perpetuity

• Payback Period

Which of these is an example of "Future Value"?

• Money you will have in 5 years.

• Money you have right now.

• Money you had last year.

If you want to know how much your savings will be worth in the future, what are you calculating?

• Present Value

• Future Value

• Payback Period

What is the main idea of "Present Value"?

• Money now is worth more than money later.

• Money later is worth more than money now.

• Money now and later are the same.