MBA 600 - Finance Module Exam Questions And
Complete Answers
Type 0 - ANSWER when payments comes at the end of the year
Type 1 - ANSWER when payment comes at the beginning of the year
compounding - ANSWER finding future value
discounting - ANSWER finding present value
single payment - ANSWER lump sum payments
annuity payment - ANSWER when the payments are equal and made at fixed intervals
ordinary annuity - ANSWER when payment comes at the end of the year, type 0
annuity due - ANSWER when payment comes at the beginning of the year, type 1
time line - ANSWER an important tool used in time value analysis; it is a graphical
representation used to show the timing of cash flows
Future value - ANSWER the amount to which a cash flow or series of cash flows will
grow over a given period of time when compounded at a given interest rate
present value - ANSWER the value today of future cash flow or a series of cash flows
Complete Answers
Type 0 - ANSWER when payments comes at the end of the year
Type 1 - ANSWER when payment comes at the beginning of the year
compounding - ANSWER finding future value
discounting - ANSWER finding present value
single payment - ANSWER lump sum payments
annuity payment - ANSWER when the payments are equal and made at fixed intervals
ordinary annuity - ANSWER when payment comes at the end of the year, type 0
annuity due - ANSWER when payment comes at the beginning of the year, type 1
time line - ANSWER an important tool used in time value analysis; it is a graphical
representation used to show the timing of cash flows
Future value - ANSWER the amount to which a cash flow or series of cash flows will
grow over a given period of time when compounded at a given interest rate
present value - ANSWER the value today of future cash flow or a series of cash flows
