CM 2113 Test 1 - Practice Chao Wang
1. Payments that differ in amount may be equal if made c. Equivalence
at different points in time is known as .
Select one:
a. Monetary values
b. Time value
c. Equivalence
d. Equality
2. The Time Value of money is based on the premise that b. Interest
money can generate over a period of time.
Select one:
a. Equipment
b. Interest
c. Capital
d. Budgets
3. Comparing a future cost of one alternative with the False
present worth cost of a second alternative is valid and
meaningful.
Select one:
True
False
4. The reason why the value of money increases with time True
is because of the interest rate.
Select one:
True
False
5. Look up the following factor value in the given refer- b. 0.746
ence table.
(P/F, 5%, 6)
, CM 2113 Test 1 - Practice Chao Wang
Select one:
a. 0.147
b. 0.746
c. 1.340
d. 0.784
6. Look up the following factor value in the given refer- c. 7.606
ence table.
(P/A, 10%, 15)
Select one:
a. 0.031
b. 4.177
c. 7.606
d. 0.131
7. Look up the following factor value in the given refer- a. 0.117
ence table.
(A/F, 2%, 8)
Select one:
a. 0.117
b. 0.137
c. 0.853
d. 1.172
8. Look up the following factor value in the given refer- c. 0.530
ence table.
(A/P, 4%, 2)
Select one:
a. 0.490
b. 0.925
c. 0.530
d. 2.040
1. Payments that differ in amount may be equal if made c. Equivalence
at different points in time is known as .
Select one:
a. Monetary values
b. Time value
c. Equivalence
d. Equality
2. The Time Value of money is based on the premise that b. Interest
money can generate over a period of time.
Select one:
a. Equipment
b. Interest
c. Capital
d. Budgets
3. Comparing a future cost of one alternative with the False
present worth cost of a second alternative is valid and
meaningful.
Select one:
True
False
4. The reason why the value of money increases with time True
is because of the interest rate.
Select one:
True
False
5. Look up the following factor value in the given refer- b. 0.746
ence table.
(P/F, 5%, 6)
, CM 2113 Test 1 - Practice Chao Wang
Select one:
a. 0.147
b. 0.746
c. 1.340
d. 0.784
6. Look up the following factor value in the given refer- c. 7.606
ence table.
(P/A, 10%, 15)
Select one:
a. 0.031
b. 4.177
c. 7.606
d. 0.131
7. Look up the following factor value in the given refer- a. 0.117
ence table.
(A/F, 2%, 8)
Select one:
a. 0.117
b. 0.137
c. 0.853
d. 1.172
8. Look up the following factor value in the given refer- c. 0.530
ence table.
(A/P, 4%, 2)
Select one:
a. 0.490
b. 0.925
c. 0.530
d. 2.040
