# Fina Ch4 quiz

.docx
School
Tarrant County College, Fort Worth **We aren't endorsed by this school
Course
FINA 3313
Subject
Finance
Date
Oct 27, 2023
Pages
5
Uploaded by kcastro9912 on coursehero.com
Fina Ch4 quiz 1) What tools can be used to solve time value of money problems? Manually by mathematical formula financial calculator tables of TVM factors Excel 2) Which of the following is NOT true about the time value of money concept? The general approach is to take money received in the future as a benchmark and compare that to how much the same amount of money is worth now. 3) What is the future value of \$100 invested at 10% simple interest for 1 year? 110 4) If you feel that the value of \$107 in one year is just as good as \$100 now. the \$100 is the Present Value (PV) (Links to an external site.) of the \$107 to be received in one year. True 5) What is the future value of \$100 invested at 10% compounded annually for 3 years? Enter the answer in dollar format without \$ sign or thousands comma -> 3519.23 and not \$3,519.23 or 3,519.23. (133.10 ) 6) You should never compare cash flows occurring at different times without first discounting them to a common date. (true) 7) The advantage to savers and investors of receiving compound interest rather than simple interest is that future values are larger because interest is earned on accumulated interest payments. Also, the difference in future values becomes smaller as time goes by. (false as the difference between Fv becomes larger as time goes by. 8) What is the future value of \$100 invested at 10% compounded annually for 10 years? (Enter the answer in dollar format without \$ sign or thousands comma -> 3519.23 and not \$3,519.23 or 3,519.23) answer=259.37