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CA Foundation Time Value of Money — practice questions — page 2

Explore 93 free Time Value of Money questions in CA Foundation Quantitative Aptitude. Open each question or exercise to read its content, reference answers and available explanation.

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Time Value of Money questions and exercises with answers

Showing questions 31–60 of 93.

A series last stood at Rs 200 with a CAGR of 10%. Forecast two years ahead?Read the answer and worked solution →Rs 100 grows 20% each year, compounded. What is it worth after 2 years?Read the answer and worked solution →What is the present value of Rs 2,420 due in 2 years at 10% compounded yearly?Read the answer and worked solution →A property yields Rs 24,000 rent every year forever. At 6%, its value is?Read the answer and worked solution →Rs 6,000 earns simple interest at 8% a year for 2.5 years. Interest earned?Read the answer and worked solution →A Rs 90,000 loan is repaid by an EMI of Rs 8,000 for 12 months. Total repaid?Read the answer and worked solution →A 5-year loan is repaid in equal monthly installments. How many EMIs are paid?Read the answer and worked solution →The discount factor for one year at 25% is?Read the answer and worked solution →Rs 1,000 is invested at 5% for one year. Its future value is?Read the answer and worked solution →In a reducing-balance EMI loan, the interest part of each EMI over time?Read the answer and worked solution →By time value of money, Rs 100 today is worth ___ Rs 100 a year from now.Read the answer and worked solution →Interest is paid on a deposit mainly to compensate the depositor for what?Read the answer and worked solution →A higher discount rate has what effect on the present value of future cash flows?Read the answer and worked solution →To turn the PV of an ordinary annuity into annuity-due PV, you?Read the answer and worked solution →Other things equal, an annuity due has a future value ___ an ordinary annuity's.Read the answer and worked solution →A stream of identical cash flows continuing forever is called a?Read the answer and worked solution →The Gordon growth model for valuing stock is the PV of a?Read the answer and worked solution →The present value formula for an annuity is built by summing a series of what?Read the answer and worked solution →Payments made at the end of every period form which type of annuity?Read the answer and worked solution →In the standard annuity formula, which unknown has no closed-form solution?Read the answer and worked solution →Which instrument can be readily priced using time value of money equations?Read the answer and worked solution →For monthly annuity payments, the rate i in the formulas should be?Read the answer and worked solution →Rent paid in advance is an example of which type of annuity?Read the answer and worked solution →An annuity paying over a fixed period regardless of survival is called?Read the answer and worked solution →Which annuity pays only while the annuitant is alive?Read the answer and worked solution →A life annuity with period certain guarantees payments for?Read the answer and worked solution →Variable annuity income changes with the performance of its?Read the answer and worked solution →An annuity whose income starts after an accumulation period is called?Read the answer and worked solution →An immediate annuity usually starts paying within about?Read the answer and worked solution →An annuity whose payments continue indefinitely is called a?Read the answer and worked solution →

Worked practice questions

A series last stood at Rs 200 with a CAGR of 10%. Forecast two years ahead?

  1. Rs 242
  2. Rs 220
  3. Rs 260
  4. Rs 240
Show answer and solution

Correct answer: A. Rs 242

Multiplying by 1.1 twice gives 200 x 1.21 = Rs 242.

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Rs 100 grows 20% each year, compounded. What is it worth after 2 years?

  1. Rs 140
  2. Rs 120
  3. Rs 142
  4. Rs 144
Show answer and solution

Correct answer: D. Rs 144

100 x 1.2 x 1.2 = Rs 144.

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What is the present value of Rs 2,420 due in 2 years at 10% compounded yearly?

  1. Rs 2,100
  2. Rs 2,000
  3. Rs 2,200
  4. Rs 1,936
Show answer and solution

Correct answer: B. Rs 2,000

2,420 / 1.21 = Rs 2,000.

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