FINAL PAPER 2026 TESTED QUESTIONS WITH
ANSWERS
◉Future value . Answer: The sum to which an investment will grow
after earning interest.
◉Present value . Answer: The value today of a future cash flow,
obtained by discounting future cash flows back to the present at an
appropriate discount rate.
◉Compounding . Answer: The process of converting an initial amount
into a future value by earning interest on the initial investment and
reinvesting the interest.
◉Discounting . Answer: The process of converting future cash flows to
their present value by adjusting the cash flows for the time value of
money.
◉Principal amount . Answer: The initial amount of an investment.