Special Application Time Value of Money MCQs
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1. Which of the following statements is most correct?
2. What is the value of Rs. 100 perpetuity if interest is 7%?
3. If you want to deposit money into bank, what will be yours choice?
4. Which of the following is not the present value of the amount?
5. The effective rate of interest will always be ____ the nominal rate?
6. In Rule 69, we divide 69 by “n” and add what amount?
7. If a saving plan offers a nominal rate of 8%, compounding quarterly on a 1-year investment, what will be the “EIR”?
8. More frequent compounding results in _________ future values and __________ present values than less frequent compounding at the same interest rate?
9. What Stream of cash flows continue indefinitely?
10. You take a mortgage loan for Rs. 10,000 for 20 years (monthly repayments). The rate of interest is 0.6% per month. What are your monthly payments?
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