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# Perpetuities Formula and Calculations Multiple Choice Questions (MCQ) PDF Download

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## Perpetuities Formula and Calculations MCQ Quiz : Financial Management MCQs

MCQ 1: The rate of return that an investment provides its investor is classified as

A) investment return rate
B) internal rate of return
C) international rate of return
D) intrinsic rate of return

MCQ 2: The prices of bonds will be decreased if an interest rates

A) rises
B) declines
C) equals
D) none of above

MCQ 3: The value of payment is \$25 and an interest rate is 2%, then the present value will be

A) 12.5 dollars
B) 0.0008 dollars
C) 1,250 dollars
D) 0.8 dollars

MCQ 4: The prices of bonds will be increased if the interest rates

A) equals
B) lump sum declines
C) rises
D) declines

MCQ 5: The payment if it is divided with interest rate will be the formula of

A) future value of perpetuity
B) present value of perpetuity
C) due perpetuity
D) deferred perpetuity

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