Which of the following best describes the relationship between present value (PV) and the discount rate, assuming all other factors remain constant?
Valuation Quiz

Quiz
•
Mathematics
•
University
•
Hard

Adam Bozman
Used 1+ times
FREE Resource
12 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
As the discount rate increases, PV decreases.
As the discount rate increases, PV increases.
The discount rate has no impact on PV.
PV is always equal to the discount rate.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following best defines a perpetuity?
A stream of cash flows that lasts for a fixed period.
A single sum of money in the future.
A constant stream of cash flows that lasts forever.
A variable stream of cash flows that changes over time.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the future value of $500 invested for 5 years at an interest rate of 6% compounded annually?
$669.10
$670.20
$698.63
$750.00
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If the present value of a perpetuity is $1,000 and the discount rate is 5%, what is the annual cash flow from this perpetuity?
$10
$50
$200
$500
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
An ordinary annuity makes payments at the ________ of each period, whereas an annuity due makes payments at the ________ of each period.
Beginning; End
Middle; End
End; Beginning
Beginning; Middle
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How much will you have in 4 years if you invest $1,000 today in an account that pays 7% interest, compounded annually?
$1,310.80
$1,287.24
$1,000.00
$1,131.48
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which formula correctly represents the Present Value of a Perpetuity?
PV = C/r
PV = C * (1 + r)^t
PV = C/[(1 + r)^t]
PV = C * r
Create a free account and access millions of resources
Similar Resources on Quizizz
13 questions
Rates and Percent

Quiz
•
6th Grade - University
11 questions
Bank Discount & Promissory Notes

Quiz
•
University
10 questions
Simple Discount and Promissory Notes

Quiz
•
University
15 questions
Percent of Change Proportion Discount

Quiz
•
7th Grade - University
17 questions
Mathematics of Finance

Quiz
•
University
12 questions
SE-FIND DISCOUNT-(1-21)

Quiz
•
9th Grade - University
14 questions
Percentage Discount and Sales Tax

Quiz
•
7th Grade - University
17 questions
072 - Quiz - Discount

Quiz
•
7th Grade - University
Popular Resources on Quizizz
15 questions
Multiplication Facts

Quiz
•
4th Grade
25 questions
SS Combined Advisory Quiz

Quiz
•
6th - 8th Grade
40 questions
Week 4 Student In Class Practice Set

Quiz
•
9th - 12th Grade
40 questions
SOL: ILE DNA Tech, Gen, Evol 2025

Quiz
•
9th - 12th Grade
20 questions
NC Universities (R2H)

Quiz
•
9th - 12th Grade
15 questions
June Review Quiz

Quiz
•
Professional Development
20 questions
Congruent and Similar Triangles

Quiz
•
8th Grade
25 questions
Triangle Inequalities

Quiz
•
10th - 12th Grade