Annuities and Present Value Multiple Choice Questions with Answers – PDF Download

MCQ 1: The amount of money today which is equal to series of payments in future:

1. nominal value of annuity
2. sinking value of annuity
3. present value of annuity
4. future value of annuity

MCQ 2: The process of loan repayment by installment payments is classified as:

1. amortizing a loan
2. depreciation a loan
3. appreciation of loan
4. appreciation of investment

MCQ 3: The formula used for annuity A as R[(1+i)ⁿ -1]⁄i(1+i)ⁿ used to calculate:

1. future value of annuity
2. nominal value of annuity
3. sinking value of annuity
4. present value of annuity

MCQ 4: The portion of formula used to calculate equal payment annuity [(1+i)ⁿ -1]⁄i(1+i)ⁿ is classified as:

1. series future growth factor
2. series present worth factor
3. series future worth factor
4. series present growth factor

MCQ 5: The dollar amount of mortgage loan multiplied monthly payment of mortgage loan per dollar is used to calculate:

1. semiannually mortgage payment
2. daily mortgage payment
3. monthly mortgage payment
4. annually mortgage payment