Practice Present Value of an Annuity (PVA) - 24.5.2 | 24. Time Value of Money | Management 1 (Organizational Behaviour/Finance & Accounting)
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is PVA?

💡 Hint: Think about what 'present value' means.

Question 2

Easy

What does PMT stand for in the PVA formula?

💡 Hint: Consider the amount you receive or pay at each interval.

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 PVA stand for?

  • Present Value of an Annuity
  • Present Value of an Aggregate
  • Present Value of All

💡 Hint: Think about the purpose of this concept.

Question 2

True or False: An annuity is always made at the beginning of each period.

  • True
  • False

💡 Hint: Recall the two types of annuities.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Determine the present value of an annuity that pays ₹15,000 at the end of each year for 10 years at an interest rate of 7%.

💡 Hint: Make sure to substitute correctly in the PVA formula.

Question 2

How would you adjust your PMT if the interest rate increased to 9% but you still wanted the same PVA of ₹100,000?

💡 Hint: Think about how increasing the interest rate could decrease the required PMT.

Challenge and get performance evaluation