Practice Future Value (fv) (24.4.1) - Time Value of Money - Management 1 (Organizational Behaviour/Finance & Accounting)

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6 sample questions

Question 1.
What is the Future Value of ₹5,000 at an interest rate of 6% after 1 year?
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Use the FV formula: FV = PV × (1 + r).
Question 2.
Calculate the FV of ₹2,000 at 8% after 2 years.
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Remember to use the power for the number of years.
3Question 3.
What does Future Value (FV) represent?
- The current worth of money
- The potential worth of money in the future
- The sum of past investments
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Think about how money grows over time.
4Question 4.
True or False: The formula for FV only applies to simple interest calculations.
- True
- False
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Consider how interest accumulates.
Question 5.
Calculate the Future Value of ₹30,000 invested at 8% compounded annually for 6 years.
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This is a compounded interest problem, remember to use the exponent.
Question 6.
If ₹10,000 is invested at 6% annual interest compounded monthly for 5 years, what is the FV?
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Adjust the interest rate accordingly as it compounds monthly.

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