TVOM

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 amount money a person expects to have in the future is called________

• Simple interest

• Present value

• Future value

• Payment

The future value of RM1000 deposited today at 5 percent for 6 years is

• RM13401

• RM1340.10

• RM68019

• RM6801.9

The present value of RM300 to be received seven years from today, assuming it is discounted at 10 percent

• RM353.90

• RM1539.60

• RM3539.00

• RM153.96

It is refer to a series of equal payments for a specific time.

• Annuity

• Perpetuities

• Compounded

• Interest factors

Ordinary annuity is paid/ received at the _______ of the time/ periods meanwhile annuity due is paid/ received at the_______ of the time/ periods.

• beginning

  end

• end

  beginning

• same

  early

• early

  later

__________ is a stream of unequal periodic or inconsistency of cash flows.

• A sum of money

• Annuity

• Mixed stream

Calculate the value of RM50.00 to be paid at the end of each year discounted at 20% for 12 years.

• RM221.96

• RM2219.60

• RM56.10

• RM561

Future value of RM10.00 to be receive at the beginning of each year compounded at 4% for 30 years.

• RM5832.80

• RM583.28

• RM5608.50

• RM560.85