Money Question and answers already
passed 2026
Time Value of Money key areas - correct answer ✔Valuation of Bonds
Valuation of Stock
Evaluation of Investment projects
Time Value of Money Principle - correct answer ✔Value of money depends when it is received
Financial markets use interest rates to - correct answer ✔Determine "how much"
Time Value of Money Terms - correct answer ✔Present Value (PV)
Future Value (FV)
Interest Rate - rate of increase in cash balance per year
TVM equation (FV and PV) - correct answer ✔FV = PV x (1 + interest rate)
PV = FV / (1 + interest rate)
TVM in Excel - correct answer ✔PV (Present value) single sum of cash today
FV (Future value) single sum of cash in the future
PMT (Payment) series of cash (per period)
NPER (Periods) number of periods (e.g. semi-annually)
RATE (Interate rate) interest rate PER PERIOD
TYPE - 0 = End of period. 1 = Beginning of period.