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CA Foundation Time Value of Money — practice questions — page 4

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 91–93 of 93.

CAGR is a good method to compare which of the following over several years?Read the answer and worked solution →Forecasting with CAGR multiplies the last value by what, once per year?Read the answer and worked solution →CAGR is used for annualized growth of economic data such as?Read the answer and worked solution →

Worked practice questions

CAGR is a good method to compare which of the following over several years?

  1. Office rents
  2. Tax liabilities
  3. Staff headcounts
  4. Investment returns
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Correct answer: D. Investment returns

A single annualized rate makes the returns of two bonds or stocks directly comparable.

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Forecasting with CAGR multiplies the last value by what, once per year?

  1. (1 + CAGR)
  2. 2 x CAGR
  3. (1 - CAGR)
  4. CAGR
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Correct answer: A. (1 + CAGR)

Each year's value is the previous one times (1 + CAGR).

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CAGR is used for annualized growth of economic data such as?

  1. Average land area
  2. Gross domestic product
  3. Legal voting age limit
  4. Water boiling points
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Correct answer: B. Gross domestic product

GDP is a growing economic series, so its mean annual growth is computed as a CAGR.

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More Quantitative Aptitude topics

ProbabilityPermutations and CombinationsCorrelation and RegressionRatio and Proportion, Indices and LogarithmsSets, Relations and FunctionsMeasures of Central Tendency and DispersionStatistical Representation of Data and SamplingSequence and Series