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Free Mathematics of Finance Learning App (Android & iOS) with MCQ: "Present value of cash inflows is $50,000 USD and present value of cash outflows is $55,000 USD then net present value is"; with answers: −$5000, −$105000, $5,000, and $105,000. Practice Simplex Computer Solutions Quiz Questions, download Apple Book (Free Chapter) for online colleges for business management.

Mathematics of Finance MCQ – Practice Test 2 PDF Download

MCQ 6: The present value of cash inflows is $50,000 USD and present value of cash outflows is $55,000 USD then net present value is:

  1. −$105000
  2. −$5000
  3. $5,000
  4. $105,000

MCQ 7: The nominal rate which is compounded more frequently than annually is equal to interest rate:

  1. compounded annually
  2. compounded monthly
  3. discounted annually
  4. discounted monthly

MCQ 8: In the formula of simple interest, the definition of period implies on:

  1. i and n
  2. p and n
  3. I and P
  4. p and P

MCQ 9: The positive cash flows are classified as:

  1. cash inflows
  2. cash outflows
  3. present cash
  4. future cash

MCQ 10: The interest rate per year is 24% and the compounding occurs every month then interest rate per compounding period is:

  1. 3
  2. 0.2
  3. 0.02
  4. 20

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