Scribd Logo
Upload

Welcome to Scribd!

  • Latihan Case Time Value of Money

    Uploaded by

    Subbagian Rumah Tangga Kanwil DJBC Sumut
    17 views1 page
    This document contains 10 true/false questions related to time value of money concepts. Question 2 and 5 are true - a perpetuity continues forever and present value/future value problems often require combining multiple time value calculations. Question 9 is also true - EAR and nominal rate are the same when compounded annually. The other questions are false statements related to opportunity costs, annuities, interest tables, compounding preferences, and present value relationships with interest rates.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document contains 10 true/false questions related to time value of money concepts. Question 2 and 5 are true - a perpetuity continues forever and present value/future value problems often require combining multiple time value calculations. Question 9 is also true - EAR and nominal rate are the same when compounded annually. The other questions are false statements related to opportunity costs, annuities, interest tables, compounding preferences, and present value relationships with interest rates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    17 views1 page

    Latihan Case Time Value of Money

    Uploaded by

    Subbagian Rumah Tangga Kanwil DJBC Sumut
    This document contains 10 true/false questions related to time value of money concepts. Question 2 and 5 are true - a perpetuity continues forever and present value/future value problems often require combining multiple time value calculations. Question 9 is also true - EAR and nominal rate are the same when compounded annually. The other questions are false statements related to opportunity costs, annuities, interest tables, compounding preferences, and present value relationships with interest rates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    True or False

    ------ 1.All persons will have the identical opportunity cost rate.
    ____2. A perpetuity may be thought of as an annuity that continues forever.
    ____3. The Truth in Lending Act requires that lenders disclose the EAR.
    ____4. The present value of a future amount will be higher with a higher interest rate.
    ____5. Present value and future value problems in real-life often require combining two or more time
    value problems.
    ____6. Most annuities are categorized as annuities due.
    ____7. In order to calculate the future value of a perpetuity, one need only to consult an existing table.
    ____8. Lenders prefer less frequent compounding; borrowers prefer more frequent compounding.
    ____9. When the compounding period is one year and the interest is compounded annually, the EAR
    and the nominal rate of interest will be the same.
    ____10. The present value of a future amount is smaller when interest rates decrease.

    You might also like