5. It refers to the value right now of some amount of money in the future. А. Future value В. Present value Simple interest Compound interest C. D.
5. It refers to the value right now of some amount of money in the future. А. Future value В. Present value Simple interest Compound interest C. D.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
here are some of remaining questions about
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4 I
5
6
7
D.
TIme vaiue
6.
5. It refers to the value right now of some amount of money in the future.
А.
Future value
В.
Present value
С.
Simple interest
D.
Compound interest
6. You need P25,000.00 to buy a laptop 2 years from now. How much must you invest now if
the interest rate is at 6% per annum?
A. P22,345.00
Add comment
B. P22,225.00
C. P22,249.91
D. P22,254.75
7. If I promised to give you P500.00 next year, what is the Present Value (at 10% interest)?
А. Р455.00
B. P454.55
C. P456.10
D. P450.00
8. What is P700.00 next year worth now, at an interest rate of 10%?
A. P636.37
B. P637.00
C. P636.00
D. P635.00
9. What is P10,000.00 in 10 years time, What is its Present Value at an interest rate of 6%?
A. P5,584.10
В. Р5,585.00
C. P5,594.09
D. P5,586.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bee7a96-6c01-43d4-8038-ee6b8f9baebf%2F9b231bb9-2bb4-4ca8-a0f0-125d30dae0ea%2Fhggych8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Search the menus (Alt+/)
100%
Normal text
Arial
11
4 I
5
6
7
D.
TIme vaiue
6.
5. It refers to the value right now of some amount of money in the future.
А.
Future value
В.
Present value
С.
Simple interest
D.
Compound interest
6. You need P25,000.00 to buy a laptop 2 years from now. How much must you invest now if
the interest rate is at 6% per annum?
A. P22,345.00
Add comment
B. P22,225.00
C. P22,249.91
D. P22,254.75
7. If I promised to give you P500.00 next year, what is the Present Value (at 10% interest)?
А. Р455.00
B. P454.55
C. P456.10
D. P450.00
8. What is P700.00 next year worth now, at an interest rate of 10%?
A. P636.37
B. P637.00
C. P636.00
D. P635.00
9. What is P10,000.00 in 10 years time, What is its Present Value at an interest rate of 6%?
A. P5,584.10
В. Р5,585.00
C. P5,594.09
D. P5,586.00
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6
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Multiple Choice: Choose the letter of the right answer.
1.
You deposited PHP 2,500 in a bank with an interest rate of 3% for 1 year. What is the
future value of your deposit?
PHP 2,575
1 of 3
А.
В.
PHP 2,625
C. PHP 2,562.50
D.
PHP 2,550
2. You need to save up PHP 3,500 in 1 year. How much should you save now if the bank offers
a rate of 5%? Find the present value.
A. PHP 3,414.63
В. РНP 3,333.33
С. РHP 3,397.75
D. PHP 3,465.35
3. The name associated with the amount removed from a future value when discounting it to
the present value is
A.
Interest
В.
Future Value
С.
Annuity
D.
4. If you know the present value, the future value, and the length of time before the future
amount will occur you can compute the
Cash
by using a present
value calculation.
А.
Annuity
Interest rate
Future amount of money
В.
С.
D.
Time value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bee7a96-6c01-43d4-8038-ee6b8f9baebf%2F9b231bb9-2bb4-4ca8-a0f0-125d30dae0ea%2F5181oa5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Search the menus (Alt+/)
A, P
100%
Normal text
Arial
11
3
6
7
Multiple Choice: Choose the letter of the right answer.
1.
You deposited PHP 2,500 in a bank with an interest rate of 3% for 1 year. What is the
future value of your deposit?
PHP 2,575
1 of 3
А.
В.
PHP 2,625
C. PHP 2,562.50
D.
PHP 2,550
2. You need to save up PHP 3,500 in 1 year. How much should you save now if the bank offers
a rate of 5%? Find the present value.
A. PHP 3,414.63
В. РНP 3,333.33
С. РHP 3,397.75
D. PHP 3,465.35
3. The name associated with the amount removed from a future value when discounting it to
the present value is
A.
Interest
В.
Future Value
С.
Annuity
D.
4. If you know the present value, the future value, and the length of time before the future
amount will occur you can compute the
Cash
by using a present
value calculation.
А.
Annuity
Interest rate
Future amount of money
В.
С.
D.
Time value
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