Time Value of Money Quiz
3 multiple-choice questions with answers and explanations · 1 easy, 2 medium
Simple and compound interest, and the future value and present value of a single sum.
- 1Simple Interest vs Compound InterestCompound interest differs from simple interest because, under compound interest:easy
- 2Future Value of a Single Sum: The Calculation$10,000 is invested at 5% a year, compounded annually. What is it worth after two years?medium
- 3Present Value of a Single Sum: The CalculationWhat is the present value of $12,100 receivable in two years’ time, at a discount rate of 10% a year?medium