10. Time Value of Money
Time Value of Money Equations
10. Time Value of Money
Time Value of Money Equations
05:55
Practice this topic
- Multiple Choice
The formula FV = PV * (1 + r)n is best used for:
406views6rank - Open Question
You invest \$4,545 in Clutch Bank today earning a juicy 10% annual interest. What is the value of your investment in one year? What is the value of the investment after two years?
171views9rank - Multiple Choice
The formula PV = FV (1 + r)n is best used for:
378views1rank - Open Question
You are saving up \$12,000 for a luxurious European vacation two years from now. How much money would you need to invest today at Clutch Bank, earning their juicy 10% annual interest, to have enough for your vacation? How much would you need to invest today, if instead you could only earn 6% interest?
143views8rank - Open Question
Today, you purchased a \$1,000 bond that matures in 5 years. The bond pays annual interest of 10%. Visualize these cash flows on a timeline.
136views - Multiple ChoiceWhich of the following formulas represents the present value (PV) of a single future sum (FV) discounted at an interest rate \(r\) for \(n\) periods?67views
- Multiple ChoiceWhat is the effective annual rate (EAR) for an investment that pays 10\% interest compounded annually?81views