Quiz Appendix F – Evaluating the Effect of Discount Rate on Present Value
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
Which will produce the smallest present value of a single sum of money?
Which will produce the smallest present value of a single sum of money?
What will always be the relationship between the future value of an investment that pays interest and the initial investment?
How many inputs are required for computing the future value of an investment?
What is the term used for determining the present value of a single sum of money in present value calculations?
Which statement about present value is NOT true?
What is excluded in calculating the future value of a single amount?
Which table should be used to calculate the present value of receiving $15,000 at the end of each year for the next ten years?
Which table would be used to calculate the present value of a future sum of $10,000 that will be received in five years?
If the market interest rate and the face interest rate on bonds are equivalent, the present value of the bonds will be lower than their face value at the bond sale date.
True or false: The interest revenue that will be earned can be determined by subtracting the original investment from the future value of an investment.