Practice Concept Of Time Value Of Money (24.1) - Time Value of Money - Management 1 (Organizational Behaviour/Finance & Accounting)
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Concept of Time Value of Money

Practice - Concept of Time Value of Money

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Practice Questions

Test your understanding with targeted questions

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.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

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.

1 more question available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

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.

Challenge 2 Hard

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.

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