Chapter III: Time Value of Money

Chapter III: Time Value of Money

University

43 Qs

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Chapter III: Time Value of Money

Chapter III: Time Value of Money

Assessment

Quiz

Others

University

Easy

Created by

Sheena Sheena

Used 4+ times

FREE Resource

43 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

What does the time value of money concept state?

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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