C-04 — Time Value of Money

From the perspective of finance, value of money changes with the change of —

According to the concept of time value, which of the following is more valuable?

What is the main reason of time value of money?

If interest rate is 10%, today's Tk 100 deposited in Sonali Bank becomes how much after one year?

The concept of time value of money is the root of most — decisions.

To solve mathematical problems of time value of money, which is needed?

Today's Tk 100 and Tk 110 after one year (at 10%) bear —

In business, the flow of money from selling goods and services is called —

The flow of money for purchasing raw materials, paying wages and other operating expenses is called —

The expected return from a missed investment opportunity is called —

According to Rule-72, if money doubles in n years the interest rate is —

As per Rule-72, if interest rate is 8%, money will double approximately in —

In the textbook example, land value becomes double in 10 years. By Rule-72, the implied rate is —

Land doubles in 10 years (rate 7.2%) vs Sonali Bank Savings Account at 8%. Which is logical?

To evaluate a long-term project, expected income must be converted into —

Before taking loan from a bank, the first thing to measure is —

The amount of loan installment differs based on —

Failure to repay loan installments causes —

Consider the following uses of Time Value of Money: Which of the following is correct?

At 10% interest rate, Tk 100 today is called —

At 10% interest, Tk 110 receivable after one year is called —

The formula for future value with annual compounding is —

Future value of Tk 100 after 1 year at 10% compound interest is —

Future value of Tk 100 after 2 years at 10% compounding is —

Future value of Tk 100 after 5 years at 10% annual compounding is approximately —

The method of measuring future value by charging interest on principal plus accumulated interest is called —

Compound interest is charged on —

Simple interest is calculated on —

In the 2nd year of compounding Tk 100 at 10%, the interest charged is —

After 2 years at 10% compounding, the difference between compound and simple interest on Tk 100 is —

The formula for present value with annual discounting is —

Present value of Tk 100 to be received after 1 year at 10% interest is —

Present value of Tk 100 to be received after 5 years at 10% is approximately —

If a friend pays Tk 100 after 5 years instead of now (at 10% rate), the present-value loss is approximately —

If interest rate rises from 10% to 20%, present value of Tk 100 receivable after 5 years becomes approximately —

Between rise/fall of interest rate and time value of money, the relationship is —

Discounting method is the opposite of —

The formula for future value with m compoundings per year is —

If a bank compounds monthly, the value of m is —

In monthly compounding, the periodic rate equals —

Future value of Tk 100 deposited at 10% monthly compounded after 1 year is approximately —

Extra earning on Tk 100 deposited at 10% monthly compounded for 1 year is approximately —

Tk 50,000 deposited at 13.5% monthly compounded for 10 years grows to approximately —

The periodic rate per month for 13.5% annual interest is —

The total number of compounding periods for 10 years at monthly compounding is —

The formula for present value with m compoundings per year is —

For Tk 50,000 receivable after 5 years at Bank A (10% annual compounding), the PV is approximately —

For Tk 50,000 receivable after 5 years at Bank B (9.5% monthly compounding), the PV is approximately —

Between Bank A (10% annual) and Bank B (9.5% monthly) for Tk 50,000 after 5 years, which is the more profitable deposit proposal?

The depositor prefers the bank where required PV deposit is —

The formula for Effective Annual Rate is —

For weekly compounding, the value of m is —

The nominal annual rate corresponding to weekly 1% interest is —

EAR of weekly 1% compounding loan from village money lender is approximately —

EAR is greater than nominal annual rate when —

According to the textbook, annual 67.77% interest rate is equivalent to —

What is the main reason of the time value of money?

Which of the followings is given on principal with interest?

Discounting process means: Which one is correct?

Which factor of the followings has vast importance in Time Value of Money?

Withdrawing some amount from the provident fund Mr. Harun wants to invest in Digital Bank at 12% compounding interest rate for 5 years. Bank says, after 5 years bank will pay Tk 5,00,000. How much money should Mr. Harun deposit?

Three friends started a service center. Bank A agreed to allocate Tk 50,000 at 20% yearly compound interest, refundable after 2 years. How much will they have to pay if borrowed from Bank A?

Bank B offered Tk 50,000 at 10% monthly compound interest, refundable after 2 years. How much interest will be paid if borrowed from Bank B?

In selecting the bank, the three friends will consider: Which one of the following is correct?

What is discounting?

Importance of time value of money in borrowing decisions includes —

Lack of planning loan installment before borrowing often results in —

Mr. Robin took Tk 8 lakh from Grameen Mahajan at 2% per month compound interest. The nominal annual rate is —

The Effective Annual Rate (EAR) for Robin's loan at 2% per month compounding is approximately —

Mr. Rakib hopes to receive Tk 5,00,000 after 6 years. The PV at Jaba Bank (10% semiannually) is approximately —

The PV at Beli Bank (9.5% quarterly) for Tk 5,00,000 after 6 years is approximately —

Based on present value comparison, which proposal should Mr. Rakib accept?

What is simple interest?

The main factor that differentiates present value from future value is —

Future value of Tk 10,00,000 at 10% annual compounding for 10 years is approximately —

The compounding factor $(1.10)^{10}$ is approximately —

If land value becomes double in 8 years, by Rule-72 the implied interest rate is —

Comparing Padma Bank (10% per annum) with land investment (effective 9% by Rule-72), Mr. Farhad should choose —

The time value of money concept means —

In project evaluation, expected future income must be —

Opportunity cost is the —

Compound interest is interest charged on —

The compounding method calculates —

According to Rule of 72, the doubling period of money equals —