Business Mathematics MCQs – Practice Test 2 (Chapter 7)

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The "Mathematics of Finance MCQ" App Download (Android & iOS): Nominal rate which is compounded more frequently than annually is equal to interest rate; MCQ with answers: compounded monthly, compounded annually, discounted annually, and discounted monthly. 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:

−$105000
−$5000
$5,000
$105,000

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

compounded annually
compounded monthly
discounted annually
discounted monthly

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

i and n
p and n
I and P
p and P

MCQ 9: The positive cash flows are classified as:

cash inflows
cash outflows
present cash
future cash

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

3
0.2
0.02
20

Business Mathematics Notes App & e-Book – Mathematics of Finance Exam Prep

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