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Mathematics of Finance MCQs – Practice Test 5 PDF Download

MCQ: 21

The regular deposits to savings account and periodic payments for retirement funds are considered as

  1. marginal payment
  2. nominal payment
  3. annuity
  4. effective payment
MCQ: 22

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
MCQ: 23

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
MCQ: 24

The reciprocal of series compound amount factor is classified as

  1. series fund factor
  2. sinking fund factor
  3. annuity fund factor
  4. nominal fund factor
MCQ: 25

The present value of cash inflows is $70,000 USD and present value of cash outflows is $85,000 USD then net present value is

  1. −$155000
  2. $15,000
  3. −$15000
  4. $155,000

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