Q.1 In which case will an investor receive the most interest.

a) 10% Compounded Annually b) 10% Compounded Monthly c)

Q.2 The Accumulated value of a unit of money invested at Compound interest i per annum for n years is______
a) (1+i)n b) (1+i)n c)
Q.3 The present value of (1+i) payable at the end of a year is__________.
a) 1/(1+i) b) 1 c)
Q.4 The present value of 1 payable at the end of a year is__________.
a) v2 b) (1+i) c)
Q.5 The Accumulated value of Rs.300 invested at Compound interest 6% per annum for 5 years is___________
a) 403.9751 b) 412.1856 c)
Q.6 Which of the following formulas is the correct way to express a Accumulated value 2 years into the future b
a) k(1+i)(1+i) b) k(1+i)+k(1+i) c)
Q.7 The value of v @ 4% is_______________.
62

a) 0.08888 b) 0.08789 c)
Q.8 512(1+i)3=719.32, determine 'i'.
a) 0.1 b) 0.11 c)
Q.9 A series of payments made at successive periods(intervals) of time is called an ______________.
a) Principal b) Annuity c)
Q.10 A series of Equal payments made at successive periods(intervals) of time is called an ______________.
a) Annuity Due b) Uniform Annuity c)
Q.11 If the total interval for which the payments of the annuity are to be made is a definite number of years, not d
a) Uniform Annuity b) Variable Annuity c)
Q.12 If the payments are to be made during the life of a person it is called a________________.
a) Life Annuity b) Immediate Annuity c)
Q.13 If the successive payments of the annuity are made at the end of the successive periods, the the annuity is ca
a) Annuity certain b) Life Annuity c)
Q.14 If the successive payments of the annuity are made at the beginning of the each successive periods, the the a
a) Annuity certain b) Life Annuity c)
Q.15 If the successive payments of the annuity are made after some period of time then the annuity is called ____
a) Life Annuity b) Deferred Anuities c)
Q.16 A deferred annuity certain is an annuity certain postponed for given period called the________________.
a) Deferment period b) Deferred Anuities c)
Q.17 A deferred immediate annuity certain for 10 years with a deferment period of 5 years is one in which the fir
a) 5th year b) 4th year c)
Q.18 A deferred annuity certain due for 10 years,with a deferment period of 5 years,then the 10th payment will b
a) 14 years b) 15 years c)
Q.19 The present value of an annuity is simply the______ of the persent values of each of its periodical payments
a) difference b) sum c)
Q.20 The Accumulated value of an annuity is simply the______ of the accumulated amounts of its periodical pay
a) difference b) sum c)
Q.21 A series of 4 annual sums of money Rs.300 each is payable, the first payment taking place at the end of one
a) 993.638052 b) 995.6547 c)
Q.22 A series of 4 annual sums of money Rs.300 each is payable, the first payment taking place at the end of one
a) 1342.8336 b) 1345.7856 c)
Q.23 The present value of an immediate annuity of 1p.a. payable for n years certain at rate of interest of i p.u.p.a,
a) b) c)
Q.24 The accumuated value of an immediate annuity of 1p.a. payable for n years certain at rate of interest of i p.u
a) b) c)
Q.25 A deferred immediate annuity certain of 1 p.a. for n years certain with deferment period of m years,the pres
a) m| b) m| c)
Q.26 The present value of an annuity due of 1p.a. payable for n years certain at rate of interest of i p.u.p.a,this pre
a) b) c)
Q.27 The accumuated value of an annuity due of 1p.a. payable for n years certain at rate of interest of i p.u.p.a,thi
a) b) c)
Q.28 The present value of a sense of 6 payments of Rs.200p.a.,the first one being made at the end of 8 years,assu
a) 3.2703 b) 3.6528 c)
Q.29 When Comparing an annuity due with an ordinary(immediate) annuity with the same payment and duration
a) higher ; higher b) higher ; lower c)
Q.30 If you want to know how much money you will have at the end of 15years if you make quarterly deposits in
a) 15 ; 8% b) 15 ; 2% c)
Q.31 Which of the following is not true regarding an annuity due?
a) It is a series of equal cash flows b) It is also known as Deferred Annuity c)
Q.32 In 2 years you are to receive $10,000. If the interest rate were to suddenly decrease, the present value of tha
a) Remains unchanged b) Rise c)
Q.33 Which one of the following is the procedure of finding out the Present Value (PV)?
a) Discounting b) Compounding c)
Q.34 The interest rate used in the present value calculation is often referred to as?
a) Nominal rate b) Effective rate c)
Q.35 _______________ is the series of constant cash flows (CCF) over limited period of time?
a) Perpetuity b) Annuity c)
Q.36 Payment of car loan is an example of?
a) Annuity Due b) Perpetuity c)
Q.37 Rental payment for apartment is an example of?
a) Annuity Due b) Perpetuity c)
Q.38 In ordinary annuity payments or receipts occur at?
a) Beginning of the each period b) End of the each period c)
Q.39 A perpetuity________________
has infinite
a) value because the payments cancontinue
be valued(PV)if
b)forever the payment amount and interest c) are know
Q.40 An annuity stream where the payments occur forever is called an_________
a) Annuity Due b) Immediate Annuity c)
 10% Compounded Continuously d) 10% Compounded daily
per annum for n years is___________________.
(1+i) d) (1+i)/n

(1+i)2 d) 1/(1+i)2

1 d) v
num for 5 years is__________________.
402.3652 d) 401.4676
d value 2 years into the future based on a present value(k) and an interest rate(i)?
k(1+i) d) k+Ki

0.74125 d) 0.65231

0.12 d) 0.13
an ______________.
Amount d) Extra amount
called an ______________.
Variable Annuity d) Immediate Annuity
definite number of years, not depending upon any contingency then the annuity is called__________.
Annuity certain d) Annuity Due
___________.
Annuity Due d) Annuity certain
ve periods, the the annuity is called an______________.
Immediate Annuity d) Annuity Due
ch successive periods, the the annuity is called an______________.
Immediate Annuity d) Annuity Due
then the annuity is called _______________.
Annuity Due d) Variable Annuity
alled the________________.
Annuity certain d) Immediate Annuity
f 5 years is one in which the first payment is to be made at the end of the___________.
6th year d) 7th year
rs,then the 10th payment will be made at the end of__________.
16years d) 17 years
each of its periodical payments as the commencement of the annuity.
multiply d) division
d amounts of its periodical payments as the end of the period of the annuity.
multiply d) division
t taking place at the end of one year from now, then the present value of the 4 payments@8%p.a.
989.6359 d) 994.7452
t taking place at the end of one year from now, then the accumulated value of the 4 payments@8%p.a.
1351.8336 d) 1352.5263
n at rate of interest of i p.u.p.a,this present value is denoted by the symbol_________.
d)
ertain at rate of interest of i p.u.p.a,this accumulated value is denoted by the symbol_________.
d)
ment period of m years,the present value of such annuity is denoted by the symbol__________.
m| d) m|
e of interest of i p.u.p.a,this present value is denoted by the symbol_________.
d)
at rate of interest of i p.u.p.a,this accumulated value is denoted by the symbol_________.
d)
made at the end of 8 years,assuming a rate of interest of 6%p.a
2.8956 d) 4.2356
he same payment and duration,the annuity due will always have a_____present value and will always have a_____f
lower ; lower d) lower ; higher
you make quarterly deposits in a bank that pays 8% interest compounded quarterly then n = _____ and i = _____.
60 ; 8% d) 60 ; 2%

Cash flows occur for specific time period

Payments
d) are made at the starts of each period
crease, the present value of that future amount to you would?
Fall The correct d)
answer can not be determind without more knowledge
(PV)?
Time value of money d) Accumulating

Discount rate d) Inflation Rate

riod of time?
Present Value d) Accumulated Value

Immediate Annuity d) Life Annuity

Immediate Annuity d) Life Annuity

Mid of the each period d) Quarterly Bases

be valued(AV)if the payment amount and interest

d) are
don't
knowexists in the financial world

Life Annuity d) Perpetuity