Business Mathematics MCQs - Chapter 7

Mathematics of Finance Multiple Choice Questions (MCQ) PDF - 6

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Mathematics of Finance Questions & Answers PDF Download: MCQ Quiz 6

MCQ 26: If desired rate of return exceeded by actual rate of return then it is classified as

positive cash flows
negative cash flows
future cash flows
present cash flow

MCQ 27: The dollar amount of mortgage loan multiplied monthly payment of mortgage loan per dollar is used to calculate

semiannually mortgage payment
daily mortgage payment
monthly mortgage payment
annually mortgage payment

MCQ 28: For annual compounding, the appropriate period is

a year
a month
a day
an hour

MCQ 29: The process of translating cash flow into equivalent dollars at common base period is considered as

semiannual cash flow
annual cash flow
compounded cash flow
discounted cash flow

MCQ 30: The present value of cash inflows is $32,000 USD and present value of cash outflows is $25,000 USD then net present value is

$7,000
($7,000)
$57,000
($57,000)

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