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TIME VALUE OF MONEY

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

The formula for compound value is :

a)

FVn = PV (1+i)

b)

FVn = PV/(1+i)

c)

FVn = PV (1+i)n

d)

FVn = (1+i)/PV

2.

What is the future value of $1000 compounded annually at 8% for five years ?

a)

$1,080

b)

$1,400

c)

$1,469

d)

$1,800

3.

Konsep nilai waktu uang adalah uang yang ada saat ini, nilainya sama dengan uang yang akan diterima masa mendatang

a)

Benar

b)

Salah

4.

Computing the future value of an amount of money for any specified time period requires knowledge of the amount of principal and the interest rate

a)

True

b)

False

5.

Nilai FVIF besarnya

a)

lebih dari 1

b)

kurang dari 1

c)

sama dengan 1

6.

The more frequently interest is compounded the greater the future value

a)

True

b)

False

7.

Present value interest factor (PVIF) are usually less than 1.0

a)

True

b)

False

8.

What is the present value of a ten year $1000 ordinary annuity discounted at 6% ?

a)

$4886

b)

$6145

c)

$7360

d)

$10000

9.

Parents want to save $100,000 for their child's education. They plan to make fifteen equal year end payments and expect to earn an 8% annual interest rate. How much will they have to invest annually to accumulate the $100,000 ?

a)

$2,542

b)

$3,683

c)

$6,139

d)

$7,285

10.

If you borrowed $120,000 to buy a hous and financed it at 10% annual interest for thirty years, what is your annual mortgage payment assuming that you make equal year end payment?

a)

$4000

b)

$3500

c)

$5336

d)

$12729