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WorksheetsFinancial Management 3
Total questions: 8
Worksheet time: 4mins
The present value of $115,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is:
$121,000
$100,500
$110,000
$104,545
A two-year discount factor at a discount rate of 10% per year is:
(a)
If you invest $100,000 today at 12% interest rate for one year, what is the amount you will have at the end of the year?
$90,909
$112,000
$100,000
None of the above
If the present value of the cash flow X is $200, and the present value cash flow Y is $150, then the present value of the combined cash flow is:
$200
$150
$350
$50
What is the present value annuity due factor of $1 at a discount rate of 15% for 15 years?
$5.8474
$6.7245
7.1324
8.5143
A bank offers the following investments. Which do you prefer?
A stated rate of 10% continuously compounded
stated rate of 10% compounded annually
A stated rate of 10% compounded semi-annually
A rate of 10% simple interest
The "time value of money" means that
money paid out today less value than if the money is paid out in the future
money received today is worth more than the same amount of money received in the future
the more time a person has to save, the lower the return on the money
the longer money is held, the less likely it will be spent
