Practice Time Value Of Money (1.4) - Construction Methods and Equipment Management

Practise this section

10 questions

Flashcard drill
4 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
4 questions · about 3 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
Define Time Value of Money.
Show hintHide hint
Think about how inflation and interest rates affect money.
Question 2.
What does compounding mean?
Show hintHide hint
Consider how your savings grow over time in a bank account.
3Question 3.
What is the Time Value of Money?
- It means money has the same value over time
- Money available today is worth more than tomorrow
- Future value is always higher than present value
Show hintHide hint
Think about interest rates and investment.
4Question 4.
True or False: Present Value is the future worth of money discounted at a particular interest rate.
- True
- False
Show hintHide hint
Recall the formula of Present Value.
Question 5.
If you want to have ₹10,00,000 in 15 years and the interest rate is 6%, how much should you invest each year?
Show hintHide hint
Rearrange the formula to isolate A.
Question 6.
Calculate how much ₹2,000 invested today will amount to in 20 years at a compound interest rate of 5%.
Show hintHide hint
Use the future value formula.

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