**Special Application Time Value of Money MCQs**

**Previous Practice: Present Value of Annuity MCQs**

**Next Practice: Bond Discounting MCQs**

**MCQs 1-10**

**Click The Option and See Result**

#### 1. Which of the following statements is most correct?

Correct!
Wrong!

#### 2. What is the value of Rs. 100 perpetuity if interest is 7%?

Correct!
Wrong!

#### 3. If you want to deposit money into bank, what will be yours choice?

Correct!
Wrong!

#### 4. Which of the following is not the present value of the amount?

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Wrong!

#### 5. The effective rate of interest will always be ____ the nominal rate?

Correct!
Wrong!

#### 6. In Rule 69, we divide 69 by “n” and add what amount?

Correct!
Wrong!

#### 7. If a saving plan offers a nominal rate of 8%, compounding quarterly on a 1-year investment, what will be the “EIR”?

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Wrong!

#### 8. More frequent compounding results in _________ future values and __________ present values than less frequent compounding at the same interest rate?

Correct!
Wrong!

#### 9. What Stream of cash flows continue indefinitely?

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Wrong!

#### 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?

Correct!
Wrong!

**Further Readings**

**References**

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

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