Chơi đi học chi_Present Vs Future Value
Quiz by Dương Đăng Khoa
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20 questions
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- Q1According to the text book, what is the definition of Present Value?None of the aboveInverse of future cash flowsPresent cash flow compounded into the futureNone of above is correct60s
- Q2What is the present value formula for one period cash flow?PV = FV1/tPV = FV1/rPV = FV1*(1 + r)PV = FV1/(1 + r)60s
- Q3According to the textbook, what is the requirement to accept an investment project?NPV is positive.NPV is greater than the cost of investmentNPV is greater than the present value of cash flowsNPV is negative30s
- Q4What is the definition of a perpetuity?Same cash flows at equal intervals of time foreverUnequal cash flows at equal intervals of time forevernone of the aboveSame cash flows at equal intervals of time for a specific number of periods60s
- Q5What is the definition of an annuity?Same cash flows at equal intervals of time foreverUnequal cash flows at equal intervals of time forevernone of the aboveSame cash flows at equal intervals of time for a specific number of periods30s
- Q6If you receive VND 10 million payment at the end each year for the next 15 years, what kind of cash flow is this?An annuity duePerpetuityFuture valueAn ordinary annuity45s
- Q7AIA insurance company is selling a retirement fund that requires you to deposit VND 10 million every year, and you want to know how much the fund will be worth when you retire in the next 40 years. What financial technique should you use to calculate this valueFuture value of an annuityPresent value of a perpetuityPresent value of an annuityFuture value of a single payment30s
- Q8Which of the following statements perfectly describe the concept of compound interest?None of the aboveInterest earned on an initial investmentThe total amount of interest earned over the life of an investmentInterest earned on interest45s
- Q9Which of the following statements perfectly describe the concept of simple interest?Interest earned on an initial investmentThe total amount of interest earned over the life of an investmentInterest earned on interestNone of the above30s
- Q10The future or present value of an amount depends uponnumber of times per year compounding occurs.the number of periods.all of the above.the interest rate.60s
- Q11In general, what is the basic rule of the time value of money?a dollar in hand today is worth more than a dollar promised at some time in the futureinvestments will always be worth more tomorrow than they are todayit’s always wiser to save a dollar for tomorrow than to spend it todayall of the above express an aspect of the basic rule of time value of money60s
- Q12When comparing an annuity due with an ordinary annuity with the same payment and duration, the annuity due will always have a _______ present value and will always have a _______ future valuelower, lowerlower, higherhigher; higherhigher; lower60s
- Q13If Mr. Minh deposits $11,500 in BIDV today, what will the money be worth in 3 years, the semi-annual nominal interest rate is 4% and it’s compounded semi-annually (Don’t write currency symbol, round up to 0 decimal numbers)15,55116,83017,21013,320120s
- Q14If Mr. Minh deposits $11,500 in BIDV today, what will the money be worth in 3 years, the quarterly nominal interest rate is 2% and it’s compounded quarterly (Don’t write currency symbol, round up to 2 decimal numbers)12,524.7824,584.7814,584.7811,984.7830s
- Q15What is the present value of an ordinary 12-year annuity that pays $1,000 per year when the interest rate is 7% (Don’t write currency symbol, round up to 2 decimal numbers)9,742.707,942.707,242.705,942.70120s