- Money has time value because:
- Individuals prefer future consumption to present consumption.
- Money today is more certain than money tomorrow
- Money today is wroth more than money tomorrow in terms of purchasing power.
- There is a possibility of earning risk free return on money invested today.
**(b), (c) and (d) above.**- Given an investment of Rs. 10,000 to be invested for one year;
- It is better to invest in a scheme that pays 10% simple interest.
- It is better to invest in a scheme that pays 10% annual compound interest.
**Both (a) and (b) provide the same return**- Given an investment of Rs. 10,000 for a period of one year, it is better to invest in a scheme that pays:
- 12% interest compounded annually
- 12% interest compounded quarterly
- 12% interest compounded monthly
**12% interest compounded daily**- Given an investment of Rs. 10,000 over a period of two years, it is better to invest in a scheme that pays;
- 10% interest in the first year and 12% in second year.
- 12% interest in the first year and 10% in second year.
**Both (a) and (b) above provide the same return**- The relation between effective annual rate of interest (re) and nominal rate of interest (r) is best represented by;
- None of the above
- To find the present value of a sum of Rs. 10,000 to be received at the end of each year for the next 5 years at 10% rate, we use:
- Present value of a single cash flow table
**Present value of annuity table.**- Future value of a single cash flow table
- Future value of annuity table
- Sinking fund factor is the reciprocal of:
- Present value interest factor of a single cash flow.
- Present value interest factor of an annuity.
- Future value interest factor of a single cash flow.
**Future value interest factor of an annuity.**- If the effective rate of interest compounded quarterly is 16%, then the nominal rate of interest is:
- 14.6%
- 15%
- 14.8%
**15.12%**- If the interest rate on a loan is 1% per month, the effective annual rate of interest is:
- 12%
- 12.36%
**12.68%**- 12.84%
- If a loan of Rs. 30,000 is to be paid in 5 annual installments with interest rate of 12% p.a. then the equal annual installment will be;
- Rs. 7400
- Rs. 8100
- Rs. 7812
**Rs. 8322**- X took a housing loan of Rs. 25,00,000. The loan is to be redeemed in 120 monthly installments of Rs. 31,000 each to be paid at the end of each month. What is the implied interest rate per annum.
**8.50%**- 8.1%
- 7.70%
- 9.12%
- The difference between effective annual rate of interest with monthly and quarterly compounding, when nominal rate of interest is 10% is;
- 0.10%
- 0.14%
- 0.21%
**0.09%**- A bond has a face value of Rs. 1000 and a coupon rate of 10%. It will be redeemed after 4 years at 10% premium. Find the present value of bond at a required rate of 12%:
**Rs. 1002.80**- Rs. 960.72
- Rs. 980.84
- Rs. 1020.12
- You want to buy an ordinary annuity that will pay you 4,000 a year for the next 20 years. You expect annual interest rates will be 8 percent over that time period. The maximum price you would be willing to pay for the annuity is closest to
- 32,000
**39,272**- 40,000
- 80,000
- With continuous compounding at 10 percent for 30 years, the future value of an initial investment of 2,000 is closest to
- 34,898
**40,141**- 1,64,500
- 3,28,282
- In 3 years you are to receive 5,000. If the interest rate were to suddenly increase, the present value of that future amount to you would
**fall**- rise
- remain unchanged
- cannot be determined without more information
- Assume that the interest rate is greater than zero. Which of the following cash-inflow streams should you prefer?
- You are considering investing in a zero-coupon bond that sells for 250. At maturity in 16 years it will be redeemed for 1,000. What approximate annual rate of growth does this represent?
- 8 percent
**9 percent**- 12 percent
- 25 percent
- To increase a given present value, the discount rate should be adjusted
- upward
**downward**- same
- For 1,000 you can purchase a 5-year ordinary annuity that will pay you a yearly payment of 263.80 for 5 years. The compound annual interest rate implied by this arrangement is closest to
- 8 percent
- 9 percent
**10 percent**- 11 percent
- You are considering borrowing 10,000 for 3 years at an annual interest rate of 6%. The loan agreement calls for 3 equal payments, to be paid at the end of each of the next 3 years. (Payments include both principal and interest.) The annual payment that will fully pay off (amortize) the loan is closest to
- 2,674
- 2,890
**3,741**- 4,020
- In a typical loan amortization schedule, the amount of interest paid each period
- increases with each payment
**decreases with each payment**- remains constant with each payment
- In a typical loan amortization schedule, the total amount of money paid each period
- increases with each payment
- decreases with each payment
**remains constant with each payment**

Year1 | Year2 | Year3 | Year4 | |

A. | 400 | 300 | 200 | 100 |

B. | 100 | 200 | 300 | 400 |

C. | 250 | 250 | 250 | 250 |

D. | Any of the above, since they each sum to 1,000 |

I need more questions

ReplyDeletehi bro, can you please help me solving these sums

DeleteAnswer bta de

ReplyDeletehighlited ones are the anwers dumb.

Deletehi bro, can you please help me solving these sums

DeleteWhere we can accedd all chapter mcqs any link description

ReplyDeleteaccess *

ReplyDeletehi bro, can you please help me solving these sums

DeleteGive us more mcqs related to fanancial management

ReplyDeletemajaa aavi gyi.......ae haalooooo jamva, paisa che ne bhai he......ae haalooooo gogaa dhampachadi kariye.......hu toh aavis j ho.....hu kon chu khabar che tane...ae haaloooooo����

ReplyDeletehi bro, i m yash chowmal, kyathi cho tu, hu rajkot thi chu marwadi college kok di madsu bhega panipuri khasu

Deletehi bro, can you help me in solving above sums.... I am finding it difficult as these sums were never a part of my syllabus

DeleteVery efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors. Many thanks. Visit More:

ReplyDeletefamily lawyers near me free consultation

It is truly a well-researched content and excellent wording. I got so engaged in this material that I couldn’t wait to read. I am impressed with your work and skill. Thanks. Read more info about Loan Agreement

ReplyDelete

ReplyDeleteHi everyone, it’s my first visit at this web site, and piece of writing is really fruitful for me, Quality content is the key to invite the users to go to see the site, that’s what this website is providing. Keep up posting these articles or reviews. You can also visit

Create Fake Receiptfor more related information and knowledge.This blog is really helpful to deliver updated affairs over internet which is really appraisable.

ReplyDeleteconvert a picture to black and white

7th answer is wrong

ReplyDeleteCorrect answer is present value interest factor of a single cash flow ..

The concept of time value of money is crucial in understanding the importance of financial decisions. It recognizes that the value of money changes over time due to inflation and interest rates. Proper understanding of this concept is imperative for making informed investment choices. For students researching finance-related topics like this, seeking quality dissertation help uk

ReplyDeletecan provide valuable insights and guidance.

When you think to apply for a Wedding loan you also check what is the interest rate on it. And then you decide to apply for loan.

ReplyDeleteIn need of quick financial assistance? Look no further than Ramfincorp! Our fast and reliable services provide you with the quick personal loan you require, ensuring your financial peace of mind. With our user-friendly process, you can secure the funds you need within no time.

ReplyDeleteI love the convenience of my wireless phone charger. No more fumbling with cords, just drop and charge – it's a game-changer! #WirelessPhoneCharger ðŸ”ŒðŸ“±

ReplyDeleteThe Time Value of Money is a fundamental financial concept. How Updated Stay It recognizes that money today is worth more than the same amount in the future. Understanding TVM is vital for investments, loans, and financial planning.

ReplyDeletePromoting safety and responsible choices, "Sober driver Dubai" stands out as a reliable service in Dubai, ensuring a secure journey with their professional and sober drivers. Trust them for a worry-free ride in the city.

ReplyDeletePromoting safety and responsible choices, "Sober driver Dubai" stands out as a reliable service in Dubai, ensuring a secure journey with their professional and sober drivers. Trust them for a worry-free ride in the city.

ReplyDelete