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Q 1/20
Score 0
According to the text book, what is the definition of Present Value?
60
None of the above
Inverse of future cash flows
None of above is correct
Present cash flow compounded into the future
Q 2/20
Score 0
What is the present value formula for one period cash flow?
60
PV = FV1*(1 + r)
PV = FV1/t
PV = FV1/(1 + r)
PV = FV1/r
20 questions
Q.
According to the text book, what is the definition of Present Value?
1
60 sec
Q.
What is the present value formula for one period cash flow?
2
60 sec
Q.
According to the textbook, what is the requirement to accept an investment project?
3
60 sec
Q.
What is the definition of a perpetuity?
4
60 sec
Q.
What is the definition of an annuity?
5
60 sec
Q.
If you receive VND 10 million payment at the end each year for the next 15 years, what kind of cash flow is this?
6
60 sec
Q.
AIA 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 value
7
120 sec
Q.
Which of the following statements perfectly describe the concept of compound interest?
8
60 sec
Q.
Which of the following statements perfectly describe the concept of simple interest?
9
60 sec
Q.
The future or present value of an amount depends upon
10
60 sec
Q.
In general, what is the basic rule of the time value of money?
11
60 sec
Q.
When 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 value
12
120 sec
Q.
If 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)
13
120 sec
Q.
If 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)
14
120 sec
Q.
What 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)
15
60 sec
Q.
Ms. Lan is considering purchasing a Sunrise apartment for $220,000. She will pay 10% down and $19,800 a year for 10 years. What is the real purchase price if Ms. Lan could get an interest rate of 5% on invested money (Don’t write currency symbol, round up to 2 decimal numbers
16
120 sec
Q.
Ms. Lan thinks she can save enough to deposit $1,200 in OCB at the end of each year for the next 30 years. How much will she have if the bank pays 6% interest, compounded annually (Don’t write currency symbol, round up to 2 decimal numbers)
17
120 sec
Q.
If the interest rate is 12%, what is the 2-year discount factor (Don’t write currency symbol, round up to 3 decimal numbers)
18
60 sec
Q.
If the present value of $240 to be paid at the end of one year is $200, what is the one-year discount factor (Don’t write currency symbol, round up to 2 decimal numbers)
19
120 sec
Q.
If the present value of $500 expected to be received one year from today is $400, what is the discount rate (Don’t write percentage % symbol, round up to 0 decimal numbers)
