Question 1
If you know the future value or worth of something and would like to know what its present value or worth is, which interest factor could you use?
Present worth factor for a uniform series
Capital recovery factor
Present worth factor for a single payment
Compound amount factor
Question 2
If you are given a series of payments into the future and want to know their present value or worth, what is the best interest factor to use?
Present worth factor of an annuity
Capital recovery factor
Sinking fund factor
Compound amount factor
Question 3
This rate is applied against an investment’s return, reflecting economic conditions and giving a more realistic perspective on its return.
discount rate
inflation rate
MARR
IRR
Question 4
You want to accumulate $600,000 in a savings account in 25 years. If the bank pays 3% compounded annually, how much should you deposit in the account?
F = $600,000
N = 25 years
i = 3%
P = ?
$204,650
$325,000
286,563
$116,499
Question 5
True or false? Compounding pays interest on principal and accrued interest to give a higher return than simple interest which pays interest only on the principal amount.
True
False
Question 6
If you know what a series of payments are and want to know what their future value is, which interest factor should you use?
Present worth factor
Capital recovery factor
Sinking fund factor
Compound Amount Factor
Question 7
If your credit card's APR is 24% compounded daily, what is the effective annual interest rate that you are paying?
24%
27%
27.11%
24.27%
Question 8
What is the stated rate or the actual rate paid to lenders?
nominal rate
effective rate
real interest rate
simple interest
Question 9
What is the future value eight years from now of $35,000 invested today at a periodic interest rate of 12% compounded annually?
P =35,000
n = 8
i = 12%
F= ?
$35,000
$39,200
$86,658
$313,600
Question 10
This is the rate of return an investment needs to make to meet an owner’s standards given risk and the opportunity cost of forgoing other investment opportunities.
discount rate
inflation rate
MARR
IRR
1)
PVIF is called present worth factor. It is sued for present value of a specified future cash flow. Present worth factor is calculated using the interest rate and number of periods.
Hence, correct option is “Present worth factor for a single payment”
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Question 1 If you know the future value or worth of something and would like to...
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