Business Mathematics MCQs – Practice Test 1 (Chapter 7)

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Mathematics of Finance MCQs – Practice Test 1 PDF Download

MCQ 1: If desired rate of return is minimum by actual rate of return then it is classified as:

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

MCQ 2: The assumption in calculating annuity is that every payment is:

equal
different
nominal
marginal

MCQ 3: The accumulated series of deposits as future sum of money is classified as:

marginal fund
nominal fund
sinking fund
annuity fund

MCQ 4: The amount of money today which is equal to series of payments in future:

nominal value of annuity
sinking value of annuity
present value of annuity
future value of annuity

MCQ 5: The interest rate per year is 16 and the compounding occurs every quarter then interest rate per compounding period is:

0.4
0.04
40
0.004

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