Future Value of Annuity Quiz
10 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does the future value of an annuity measure?

  • The future worth of a series of cash flows (correct)
  • The average worth of a series of cash flows
  • The present worth of a series of cash flows
  • The maximum worth of a series of cash flows
  • How are present value and future value related?

  • The present value is always higher than the future value
  • The future value is not related to the present value
  • The future value of a series of cash flows also has a present value (correct)
  • The present value cannot be calculated
  • In what scenario would an investor try to solve for the future value?

  • When solving for the present value of a future amount needed
  • When buying a stock today with a known dividend yield (correct)
  • When calculating the present value of an investment
  • When the future value is not relevant in investment decisions
  • What can be solved for if an individual wants to have a specific future value on hand for a down payment next year?

    <p>The present value</p> Signup and view all the answers

    What is the relationship between present value and future value in terms of cash flows?

    <p>The future value of a series of cash flows also has a present value</p> Signup and view all the answers

    What is the relationship between present value and future value in terms of cash flows?

    <p>Present value and future value indicate the value of an investment looking forward or looking back</p> Signup and view all the answers

    In what scenario would an investor try to solve for the future value?

    <p>Buying a stock today for a specific price with a known dividend yield</p> Signup and view all the answers

    What can be solved for if an individual wants to have a specific future value on hand for a down payment next year?

    <p>Present value</p> Signup and view all the answers

    What does the future value of an annuity measure?

    <p>The value of a series of cash flows at a future date</p> Signup and view all the answers

    How are present value and future value related?

    <p>Future value of a series of cash flows also has a present value</p> Signup and view all the answers

    More Like This

    Annuity Future Value Quiz
    3 questions

    Annuity Future Value Quiz

    TopsTropicalRainforest avatar
    TopsTropicalRainforest
    Annuity and Cash Flow Quiz
    15 questions

    Annuity and Cash Flow Quiz

    InvigoratingTrumpet avatar
    InvigoratingTrumpet
    Future Value and Present Value of Annuity Due
    3 questions
    Annuity - Introduction and Types
    5 questions
    Use Quizgecko on...
    Browser
    Browser