D076 Finance Skills for Managers
Module 5 Question and answers
verified to pass 2025/2026
Ordinary annuities - correct answer ✔a series of equal payments made at the end of consecutive
periods over a fixed length of time
Annuities due - correct answer ✔a series of equal payments made at the beginning of consecutive
periods
Perpetuities - correct answer ✔a constant stream of identical cash flows that continues forever
Compounding - correct answer ✔finding a future value given a present value
Discounting - correct answer ✔finding a present value given a future value.
Time value of money - correct answer ✔the idea that money that is available at the present time is
worth more than the same amount in the future
Annuities - correct answer ✔equally spaced cash flows of equal amounts.
Lolo invested $30,000 today in an account that gives 3% interest. Starting one year from today, she will
be able to pull out little over $3,500 a year. What does the $30,000 represent? - correct answer
✔Present value
Twenty years ago, Mateo started an investment account with $2,000. He then invested $100 into the
account every month at the end of each month. Today, he has $46,528 in the same account. What is the
term for the $100 monthly cash flows? - correct answer ✔Annuity
Module 5 Question and answers
verified to pass 2025/2026
Ordinary annuities - correct answer ✔a series of equal payments made at the end of consecutive
periods over a fixed length of time
Annuities due - correct answer ✔a series of equal payments made at the beginning of consecutive
periods
Perpetuities - correct answer ✔a constant stream of identical cash flows that continues forever
Compounding - correct answer ✔finding a future value given a present value
Discounting - correct answer ✔finding a present value given a future value.
Time value of money - correct answer ✔the idea that money that is available at the present time is
worth more than the same amount in the future
Annuities - correct answer ✔equally spaced cash flows of equal amounts.
Lolo invested $30,000 today in an account that gives 3% interest. Starting one year from today, she will
be able to pull out little over $3,500 a year. What does the $30,000 represent? - correct answer
✔Present value
Twenty years ago, Mateo started an investment account with $2,000. He then invested $100 into the
account every month at the end of each month. Today, he has $46,528 in the same account. What is the
term for the $100 monthly cash flows? - correct answer ✔Annuity
