Exam 14: The Basic Tools of Finance: Present Value Measuring the Time Value of Money

Explore all topics

You have a choice among three options.Option 1: receive $900 immediately.Option 2: receive $1,200 one year from now.Option 3: receive $2,000 five years from now.The interest rate is 15 percent.Rank these three options from highest present value to lowest present value.

(Multiple Choice)

4.8/5

(30)

Question 201

You have been promised a payment of $400 in the future.In which of the following cases is the present value of this payment the lowest?

(Multiple Choice)

4.8/5

(32)

Question 202

On the Internet you find the following offers for opening an online account.Which of them is the best offer if you have $5,000 to save for two years?

(Multiple Choice)

4.8/5

(26)

Question 203

At which interest rate is the present value of $168.54 two years from today equal to $150 today?

(Multiple Choice)

4.7/5

(28)

Question 204

At an annual interest rate of 10 percent,about how many years will it take $100 to double in value?

(Multiple Choice)

4.8/5

(41)

Question 205

In answering which of the following questions would you find it necessary to calculate a future value?

(Multiple Choice)

4.8/5

(30)

Question 206

A bond promises to pay $500 in one year and $10,500 in two years.What is the correct way to find the present value of this bond?

(Multiple Choice)

4.8/5

(32)

Question 207

Your accountant tells you that if you can continue to earn the current interest rate on your balance of $800 for the next two years you will have $898.88 in your account.If your accountant is correct,then what is the current interest rate?

(Multiple Choice)

4.8/5

(35)

Question 208

At which interest rate is the present value of $196.85 three years from today equal to $175 today?

(Multiple Choice)

4.9/5

(34)

Question 209

At which interest rate is the present value of $95.40 one year from today equal to $90 today?

(Multiple Choice)

4.8/5

(23)

Question 210

Veronica deposited $1,000 into an account two years ago.The first year she earned 7 percent interest;the second year she earned 5 percent.How much money does Veronica have in her account today?

(Multiple Choice)

4.8/5

(37)

Question 211

Daniel has $300 in a bank account.Some years ago he put $213.20 into this account,and it has earned 5 percent interest every year since then.How many years ago did Daniel open his account?

(Multiple Choice)

4.8/5

(36)

Question 212

You could borrow $2,000 today from Bank A and repay the loan,with interest,by paying Bank A $2,125 one year from today.Or,you could borrow X dollars today from Bank B and repay the loan,with interest,by paying Bank B $2,200 two years from today.In order for the same interest rate to apply to the two loans,X =

(Multiple Choice)

4.9/5

(35)

Question 213

Showing 201 - 213 of 213

Exam 14: The Basic Tools of Finance: Present Value Measuring the Time Value of Money

You have a choice among three options.Option 1: receive $900 immediately.Option 2: receive $1,200 one year from now.Option 3: receive $2,000 five years from now.The interest rate is 15 percent.Rank these three options from highest present value to lowest present value.

You have been promised a payment of $400 in the future.In which of the following cases is the present value of this payment the lowest?

On the Internet you find the following offers for opening an online account.Which of them is the best offer if you have $5,000 to save for two years?

At which interest rate is the present value of $168.54 two years from today equal to $150 today?

At an annual interest rate of 10 percent,about how many years will it take $100 to double in value?

In answering which of the following questions would you find it necessary to calculate a future value?

A bond promises to pay $500 in one year and $10,500 in two years.What is the correct way to find the present value of this bond?

Your accountant tells you that if you can continue to earn the current interest rate on your balance of $800 for the next two years you will have $898.88 in your account.If your accountant is correct,then what is the current interest rate?

At which interest rate is the present value of $196.85 three years from today equal to $175 today?

At which interest rate is the present value of $95.40 one year from today equal to $90 today?

Veronica deposited $1,000 into an account two years ago.The first year she earned 7 percent interest;the second year she earned 5 percent.How much money does Veronica have in her account today?

Daniel has $300 in a bank account.Some years ago he put $213.20 into this account,and it has earned 5 percent interest every year since then.How many years ago did Daniel open his account?

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B

Measuring a Nations Income

Measuring a Nations Income: The Economy's Income and Expenditure

Measuring a Nations Income: The Measurement of GDP

Measuring a Nations Income: The Components of GDP

Measuring a Nations Income: Real Versus Nominal GDP

Measuring a Nations Income: Is GDP a Good Measure of Economic Well-Being