Reading 5: Time Value of Money

Question 1

Future Value of a Single Cash Flow

The Time Value of Money

5.1

Answer 1

Question 2

Future Value with Compounding

The Time Value of Money

5.2

Answer 2

Question 3

Future Value with More than One Compounding Period per Year

The Time Value of Money

5.3

Answer 3

Question 4

Future Value with Continuous Compounding

The Time Value of Money

5.4

Answer 4

Question 5

Effective Annual Rate (EAR)

The Time Value of Money

5.5

Answer 5

Question 6

Effective Annual Rate with Continuous Compounding

The Time Value of Money

5.6

Answer 6

Question 7

Future Value of an Ordinary Annuity

w/ Equal Cash Flows

The Time Value of Money

5.7

Answer 7

Question 8

Present Value of a Single Cash Flow

The Time Value of Money

5.8

Answer 8

Question 9

Present Value with More Than One Compound Cash Flow per Year

The Time Value of Money

5.9

Answer 9

Question 10

PV of a Series of Equal Cash Flows (expanded)

The Time Value of Money

5.10

Answer 10

Question 11

PV of a Series of Equal Cash Flows (condensed)

The Time Value of Money

5.11

Answer 11

Question 12

PV of an Infinite Series of Equal Cash Flows (expanded)

Annuity

The Time Value of Money

5.12

Answer 12

Question 13

PV of an Infinite Series of Equal Cash Flows (condensed)

Annuity

The Time Value of Money

5.13

Answer 13

Question 14

Solving for Interest Rate and Growth Rate

given: FV; PV; N

The Time Value of Money

5.14

Answer 14