Practice Components Influencing Tvm (24.2) - Time Value of Money - Management 1 (Organizational Behaviour/Finance & Accounting)

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8 questions

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6 sample questions

Question 1.
What is the principal in a loan of ₹5,000?
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It's the original amount borrowed.
Question 2.
How does a higher interest rate affect investments?
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Think about how much more you would earn.
3Question 3.
What is the principal amount in a loan of ₹10,000?
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It's the starting amount before any interest.
4Question 4.
True or False: The interest rate affects how much money you earn from your investment.
- True
- False
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Think about how rates work!
Question 5.
You invest ₹15,000 at a 4% annual interest rate compounded monthly for 10 years. Calculate the future value of your investment.
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Use the compound interest formula.
Question 6.
Calculate the present value of ₹25,000 to be received in 5 years if the interest rate is 5% compounded annually.
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Remember the formula for present value given future value.

4 more questions in this section. Enroll free to practise them all.