10 Questions
What is the present value of $500 to be paid in three years if the interest rate is 8%?
$416.18
In the context of present value, why is a pound of cash flow to be received one year from now less valuable than a pound received today?
Due to the opportunity to earn interest on the pound received today
If the cash flow is $800 and the interest rate is 12%, what would be the present value for a period of four years?
$682.67
If the interest rate is 5% and the future value of an investment is $500, what is the present value?
$476.19
What is the present value of $1000 to be paid in five years if the interest rate is 10%?
$620.92
What is the present value of $300 to be paid in two years if the interest rate is 8%?
$258.68
If the cash flow is $400 and the interest rate is 6%, what would be the present value for a period of three years?
$331.22
If the present value of an investment is $600, the interest rate is 4%, what would be the future value in two years?
$657.92
What is the present value of $150 to be paid in five years if the interest rate is 12%?
$79.44
If the present value of an investment is $800, the future value in three years is $1000, what is the interest rate?
25%
Test your knowledge of interest rates and their role in valuation with this quiz. Learn about measuring interest rates and the concept of present value. Gain a deeper understanding of comparing the value of different debt instruments.
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