Practice Example Of Future Value Calculation (1.6.1) - Construction Methods and Equipment Management

Practice: Example of Future Value Calculation

Lesson 1.6.1Construction Methods and Equipment Management

Practise this section

8 questions

Flashcard drill
2 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What is the future value of $500 invested at a 6% interest rate for 10 years?
Show hintHide hint
Apply the future value formula with P = 500, i = 0.06, n = 10.
Question 2.
If you want to have $1,000 after 2 years at 4% interest, what should you invest today?
Show hintHide hint
Rearrange the formula to find P.
3Question 3.
What does the term 'future value' refer to?
- The current worth of a future sum
- The amount money will grow to in the future
- The total cost of ownership
Show hintHide hint
Think about how investments increase over time.
4Question 4.
True or False: A dollar today is worth the same as a dollar in the future.
- True
- False
Show hintHide hint
Consider the factors affecting money's value over time.
Question 5.
Calculate the future value of a $10,000 investment at a 7% interest rate compounded annually over 15 years.
Show hintHide hint
Break down the calculation step-by-step.
Question 6.
Determine how much to invest today to receive $50,000 in 20 years at an interest rate of 4%.
Show hintHide hint
Rearrange and solve the present value formula.

4 more questions in this section. Enroll free to practise them all.