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WorksheetsFIN242
Total questions: 11
Worksheet time: 5mins
Name
Class
Date
1.
The amount money a person expects to have in the future is called
a)
Principal
b)
Future Value
c)
Simple Interest
d)
Present Value
2.
Earning interest on interest is called
a)
Extra Interest
b)
Simple Interest
c)
Inflation Interest
d)
Compound Interest
3.
The idea that money to be paid out or received in the future is not equivalent to money paid out or received today
a)
SMART Money
b)
Time Value of Money
c)
PV/FV Money
d)
Compound Money
4.
You invest $475 in an account that pays 3% simple interest annually. How much money do you have after five years?
a)
$546.24
b)
$544.46
c)
$543.25
d)
$546.25
5.
You invest $800 in an account that pays 6% interest, compounded annually. How much money do you have after five years? Round your answers to the nearest cent.
a)
$898.09
b)
$1070.58
c)
$1710.58
d)
$975.68
6.
Steady rise in the general level of prices is known as
a)
Inflation
b)
Interest
c)
Time Value of Money
d)
Principal
7.
Katie invested $6,500 in a savings account earning 12% interest compounded quarterly. What is the future value of this investment after five years? Round your answers to the nearest cent.
a)
$1,235,322.65
b)
$6,895.85
c)
$11,739.72
d)
$6,901.32
8.
What is the value of the highlighted number? 11.560
a)
.60
b)
.06
c)
6.0
d)
.006
9.
If you save RM5,000 today in 3-month fixed deposit, with interest 10% per annum, how much would you received when you uplift the deposits at the end of second month.
a)
RM5,000
b)
RM5,050
c)
RM5,083.33
10.
With Compound Interest, you work out the interest for the first period, add it to the total, and then calculate the interest for the next period, and so on.
a)
True
b)
False
11.
Above is the formula for FVIFA.
a)
True
b)
False
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