10. Time Value of Money
Time Value of Money Equations
10. Time Value of Money
Time Value of Money Equations
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Practice this topic
- Multiple Choice
The formula FV = PV * (1 + r)n is best used for:
341views6rank - Open Question
You invest $4,545 in Clutch Bank today earning a juicy 10% annual interest. What is the value of your investment in one year? What is the value of the investment after two years?
141views9rank - Multiple Choice
The formula PV = FV (1 + r)n is best used for:
304views1rank - Open Question
You are saving up $12,000 for a luxurious European vacation two years from now. How much money would you need to invest today at Clutch Bank, earning their juicy 10% annual interest, to have enough for your vacation? How much would you need to invest today, if instead you could only earn 6% interest?
110views8rank - Open Question
Today, you purchased a $1,000 bond that matures in 5 years. The bond pays annual interest of 10%. Visualize these cash flows on a timeline.
108views - Multiple ChoiceWhich of the following formulas represents the present value (PV) of a single future sum (FV) discounted at an interest rate $r$ for $n$ periods?9views
- Multiple ChoiceWhat is the effective annual rate (EAR) for an investment that pays 10\% interest compounded annually?7views