Multiple ChoiceWhich of the following formulas correctly calculates the future value of an ordinary annuity when additional equal investments are made at the end of each period for $n$ periods at an interest rate $r$ per period?23views
Multiple ChoiceWhich of the following best describes an ordinary annuity in the context of time value of money equations?23views
Multiple ChoiceWhat is the present value of a \$200 payment to be received in three years if the discount rate is 8\% per year, compounded annually?19views
Multiple ChoiceWhat is the annual rate of return (to the nearest percent) earned on a $1,000 investment that grows to $1,800 in six years? (Assume interest is compounded annually.)19views
Multiple ChoiceWhich of the following formulas correctly uses the PV function in Excel to calculate the present value of an investment with an annual interest rate of 6% (entered in cell B2), 10 periods (entered in cell B3), and a payment of $1,000 per period (entered in cell B4), assuming payments are made at the end of each period?19views
Multiple ChoiceYou expect to receive \$5,000 in 25 years. How much is it worth today if the discount rate is 5.5\% compounded annually?18views
Multiple ChoiceWhat is the present value of a $775 annuity payment received at the end of each year for 6 years, if the interest rate is 11\% per year? (Assume ordinary annuity)2views
Multiple ChoiceWhich one of the following variables is the exponent in the present value formula $PV = \dfrac{FV}{(1 + r)^n}$?19views
Multiple ChoiceGiven a cash flow of $1,000 to be received at the end of year 3 and a discount rate of 8\% per year, what is the present value of this year 3 cash flow?24views
Multiple ChoiceAll of the following are true statements regarding the accumulation at interest option except:24views
Multiple ChoiceIf you earn an annual interest rate of 6.9\% compounded annually, approximately how many years will it take to double your savings?18views
Multiple ChoiceWhen interest accrues and is added to the principal balance of a student loan, which of the following best describes the result?27views
Multiple ChoiceWhich of the following investment criteria takes the time value of money into consideration?23views
Multiple ChoiceA project that provides annual cash flows of $5,000 for 4 years, with a required rate of return of 8\%, has a present value closest to which of the following amounts?19views
Multiple ChoiceGiven a present value (PV), an annual interest rate $r$, and $n$ years, what is the correct formula to calculate the future value (FV)?21views