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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for calculating Present Value?
💡 Hint: Remember, you need to discount future cash flows to today’s value.
Question 2
Easy
If you have a future value of ₹20,000 to be received in 2 years at an interest rate of 10%, how would you calculate PV?
💡 Hint: Plug in the values for FV and r.
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 PV stand for in finance?
- Past Value
- Present Value
- Paid Value
💡 Hint: Think about its relationship with money and time.
Question 2
True or False: Present Value is always greater than Future Value.
- True
- False
💡 Hint: Consider the principle of time value of money.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
You receive an offer to be paid ₹50,000 in 4 years. If the discount rate is 15%, what is the Present Value?
💡 Hint: Make sure to calculate the power of (1 + r) accurately involving compounding.
Question 2
A company is expected to receive ₹1 million in 10 years. If its cost of capital is 10%, what is the Present Value?
💡 Hint: Don't forget to use the exponent correctly in your calculation.
Challenge and get performance evaluation