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WorksheetsTime Value of Money
Total questions: 13
Worksheet time: 8mins
The future value of $100 received today and deposited at 6 percent for four years is
$126
$79
$124
$116
The present value of $200 to be received 10 years from today, assuming an opportunity cost of 10 percent is
$120
can't be determined
$77
$300
If a loan of 30,000 is to be paid in 5 annual installments with interest rate of 9% per annum, then the equal annual installment will be;
can't be determined
7720.63
7,713.00
7713.26
Clara wants to buy a car worth $25,000, 3 years from now. To accumulate the
$25,000, she needs to make equal annual end-of-year deposits into an account
paying annual interest of 5 percent. How much should the annual deposit be?
7,930
6,490
9,510
6,905
It is a series of equal payments at regular intervals.
Interest
Annuity
Logic
Proposition
Ordinary annuity is paid or received at the _______ of the time periods.
beginning
end
middle
quarter
Time‑value of money is based on the belief that a dollar that will be received at some future date is worth more than a dollar today.
TRUE
FALSE
The annual rate of return is variously referred to as the
discount rate.
opportunity cost.
cost of capital.
all of the above.
The future value of a peso amount _________ as the interest rate increases and _________ the farther in the future an initial deposit is to be received.
decreases; decreases
decreases; increases
increases; increases
(a) is a stream of unequal periodic cash flows that reflect no particular pattern.
