10. Time Value of Money

Which of the following items requires the application of time value of money concepts?

The relationship between the present value (PV) and the investment time period, assuming a positive interest rate, is best described as:

Which one of the following statements correctly defines a time value of money relationship?

Given a present value of \$1,000, an annual interest rate of 6\% compounded annually, and a time period of 3 years, what is the future value (FV) using the time value of money equation?

When something earns compound interest, it earns interest on:

Interest rates are expressed as a percentage of which of the following?

What is the present value of \$6 to be received in 3 years, discounted at an annual interest rate of 5% compounded annually?

Which one of the following is an ordinary annuity, but not a perpetuity?

A dollar paid (or received) in the future is:

All else held constant, the present value of an annuity will decrease if you:

Compared to a similar fixed payment loan, the total interest paid on a fixed principal loan is:

Which of the following equations correctly calculates the future value (\(FV\)) of \$1,000 invested today for 3 years at 5\% annual interest compounded annually?

Which of the following affects the present value of an investment?

The concept of the time value of money indicates that:

Which of the following would increase the present value of a single future cash flow, assuming all other factors remain constant?