Future Value of Annuity MCQs
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1. Pension fund and insurance obligation is an example of?
2. You are getting payments of Rs. 8,000 at the beginning of every year and they are for five years. At 6%, what is the value of this annuity?
3. In ordinary annuity payments or receipts occur at?
4. Rental payment for apartment is an example of?
5. _______________ is the series of constant cash flows (CCF) over limited period of time?
6. Payment of car loan is an example of?
7. Suppose you wish to set aside Rs. 2,000 at the end of each of the next 10 years in an account paying 12 percent compounded annually. You accumulate at the end of 10 years an amount closest to?
8. In ten years you wish to own your business. How much will you have in your bank account at the end of the ten years if you deposit Rs. 300 each quarter? Assume end of the period deposits and assume that the account is paying an interest rate of 12% compounded quarterly?
9. Assume you are to receive a 20-year annuity with annual payments of Rs. 50. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 20. You will invest each payment in an account that pays 10 percent. What will be the value in your account at the end of Year 30?
10. A 5-year annuity due has periodic cash flows of Rs.100 each year. If the interest rate is 8 percent, the future value of this annuity is closest to which of the following equations?
>> Read Future Value of Annuity.
Financial Management: Theory and Practice, Dr Eugene F Brigham & C Micheal Ehrhardt
Fundamentals of Financial Management: Concise Edition, Brigham Houston
The Economist Guide to Financial Management, John Tennet
Financial Management: Core Concepts, Raymond M Brooks