What does the time value of money concept state?

Chapter III: Time Value of Money

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Sheena Sheena
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43 questions
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1.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
A dollar today is worth more than a dollar tomorrow
A dollar tomorrow is worth more than a dollar today
Money now is worth less than money in the future
Money in the future is worth more than money today
2.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
Which formula represents the future value of money?
FV = PV × (1 + r)^n
PV = FV × (1 + r)^n
FV = PV ÷ (1 + r)^n
FV = PV ÷ (1 - r)^n
3.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
In the time value of money, what does "n" represent?
Number of investments
Number of periods
Number of years
Number of payments
4.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
What factor influences the time value of money the most?
Inflation
Interest rates
Exchange rates
Investment periods
5.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
What does "PV" stand for in financial formulas?
Projected Value
Principal Value
Present Value
Profit Value
6.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
The concept of the time value of money is crucial in:
Long-term loans
Mortgage planning
Investment decisions
Short-term savings
7.
MULTIPLE CHOICE QUESTION
2 mins • 1 pt
A higher interest rate leads to a higher:
Discount rate
Future value
Present value
Payment frequency
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