Exam 26: Time Value of Money

Suzy Douglas has been offered the opportunity of investing $73,540 now. The investment will earn 8% per year and at the end of its life will return $200,000 to Suzy. How many years must Suzy wait to receive the $200,000?

(Multiple Choice)

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Question 41

If you are able to earn an 8% rate of return, what amount would you need to invest to have $30,000 one year from now?

(Multiple Choice)

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Question 42

The future value of 1 factor will always be

(Multiple Choice)

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Question 43

In order to compute the present value of an annuity, it is necessary to know the 1) discount rate. 2) number of discount periods and the amount of the periodic payments or receipts.

(Multiple Choice)

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Question 44

Which of the following is not necessary to know in computing the future value of an annuity?

(Multiple Choice)

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Question 45

The future value of a single amount is the value at a future date of a given amount invested now, assuming compound interest.

(True/False)

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Question 46

Showing 41 - 46 of 46

Suzy Douglas has been offered the opportunity of investing $73,540 now. The investment will earn 8% per year and at the end of its life will return $200,000 to Suzy. How many years must Suzy wait to receive the $200,000?

If you are able to earn an 8% rate of return, what amount would you need to invest to have $30,000 one year from now?

The future value of 1 factor will always be

In order to compute the present value of an annuity, it is necessary to know the 1) discount rate. 2) number of discount periods and the amount of the periodic payments or receipts.

Which of the following is not necessary to know in computing the future value of an annuity?

The future value of a single amount is the value at a future date of a given amount invested now, assuming compound interest.

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