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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define Time Value of Money?
💡 Hint: Think about earning potential and inflation.
Question 2
Easy
What does inflation do to purchasing power?
💡 Hint: Consider how prices change over time.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What does the concept of TVM suggest?
- Money today is worthless
- Money today is more valuable than future money
- Money loses value immediately
💡 Hint: Think about earning interest.
Question 2
True or False: Risk increases the value of future money.
- True
- False
💡 Hint: Consider how future uncertainty affects value.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
You have ₹8,000 today. If you invest this at an annual interest rate of 7% compounded annually, what will it amount to in 4 years?
💡 Hint: Use the FV formula for compound interest.
Question 2
If you desire to have ₹20,000 in 3 years, what is the present value you need to invest today at an interest rate of 5%?
💡 Hint: Consider the PV formula to find how much to invest now.
Challenge and get performance evaluation