Annuities and Present Value MCQ (Multiple Choice Questions) PDF Download

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

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

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

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

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