A perpetuity has a present value (PV) of \$10,000. If the interest rate is 5\%, what is the annual payment (C) of the perpetuity?

Which of the following is the equivalent of \$300 received today, if the annual interest rate is 5\% compounded annually and the amount is to be received in 2 years?

What is the present value (PV) of the following set of cash flows, discounted at an annual rate of 8\%? \[\begin{align*}\text{Year 1:} & \quad \$1,000 \\\text{Year 2:} & \quad \$1,500 \\\text{Year 3:} & \quad \$2,000 \end{align*}\]Choose the closest answer.

What is the present value of the following cash-flow stream if the interest rate is 6\% per year? \[\begin{align*}\text{Year 1:} & \quad \$1,000 \\\text{Year 2:} & \quad \$1,000 \\\text{Year 3:} & \quad \$1,000 \end{align*}\](A) $2,673.01(B) $2,833.39(C) $2,545.95(D) $3,000.00

You pay $9,850 for a 180-day Treasury bill (T-bill) with a face value of $10,000. What is the annualized discount rate (using a 360-day year) for this T-bill?

The time value of money considers which of the following item(s) that change the value of money over time?

To what amount will $P invested for n years at an annual interest rate of r percent, compounded annually, accumulate?

The nominal interest rate minus the rate of inflation equals which of the following?

If the going rate of interest is 10\% per year, what is the present value (PV) of \$1,000 to be received in 3 years? (Assume annual compounding.)