Present Value Calculation Quiz
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Questions and Answers

What is the total payment made over the 1 year period?

  • $18,421.00
  • $18,420.60 (correct)
  • $18,420.00
  • $18,420.40
  • What is the present value of the investment?

  • $18,500.00
  • $18,200.00 (correct)
  • $18,000.00
  • $18,300.00
  • What would be the future value of the investment after 1 year?

  • $18,700.00
  • $18,900.00 (correct)
  • $18,800.00
  • $18,600.00
  • Study Notes

    Financial Calculations

    • The total payment made over the 1-year period is to be determined.
    • The present value of the investment is to be calculated.
    • The future value of the investment after 1 year is to be calculated.

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    Description

    Test your financial calculation skills with this quiz on determining the present value of an investment. Practice applying the formula for present value and consider the impact of monthly compounding on the investment's rate of return.

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