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Questions and Answers
What is the present value of $500 to be paid in three years if the interest rate is 8%?
What is the present value of $500 to be paid in three years if the interest rate is 8%?
- $380.00
- $532.00
- $416.18 (correct)
- $480.00
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?
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 (correct)
- Due to inflation
- Due to currency exchange rates
- Due to changes in government policies
If the cash flow is $800 and the interest rate is 12%, what would be the present value for a period of four years?
If the cash flow is $800 and the interest rate is 12%, what would be the present value for a period of four years?
- $750.00
- $624.00
- $682.67 (correct)
- $496.93
If the interest rate is 5% and the future value of an investment is $500, what is the present value?
If the interest rate is 5% and the future value of an investment is $500, what is the present value?
What is the present value of $1000 to be paid in five years if the interest rate is 10%?
What is the present value of $1000 to be paid in five years if the interest rate is 10%?
What is the present value of $300 to be paid in two years if the interest rate is 8%?
What is the present value of $300 to be paid in two years if the interest rate is 8%?
If the cash flow is $400 and the interest rate is 6%, what would be the present value for a period of three years?
If the cash flow is $400 and the interest rate is 6%, what would be the present value for a period of three years?
If the present value of an investment is $600, the interest rate is 4%, what would be the future value in two years?
If the present value of an investment is $600, the interest rate is 4%, what would be the future value in two years?
What is the present value of $150 to be paid in five years if the interest rate is 12%?
What is the present value of $150 to be paid in five years if the interest rate is 12%?
If the present value of an investment is $800, the future value in three years is $1000, what is the interest rate?
If the present value of an investment is $800, the future value in three years is $1000, what is the interest rate?
