Future Value of Annuity MCQs

Previous Practice: Future Value of a Single Amount MCQs

Next Practice: Present Value of Annuity MCQs

MCQs 1-10

Click The Option and See Result

1. Pension fund and insurance obligation is an example of?

(a) Annuities

(b) Perpetuity

(d) Securities

Correct! Wrong!

2. You are getting payments of Rs. 8,000 at the beginning of every year and they are for five years. At 6%, what is the value of this annuity?

(a) Rs. 34,720

(b) Rs. 39,320

(d) None

Correct! Wrong!

3. In ordinary annuity payments or receipts occur at?

(a) Beginning of each period

(b) End of each period

(d) Quarterly bases

Correct! Wrong!

4. Rental payment for apartment is an example of?

(a) Annuity due

(b) Perpetuity

(b) Consol

Correct! Wrong!

5. _______________ is the series of constant cash flows (CCF) over limited period of time?

(a) Perpetuity

(b) Annuity

(d) Future value

Correct! Wrong!

6. Payment of car loan is an example of?

(a) Annuity due

(b) Perpetuity

(d) Consol

Correct! Wrong!

7. Suppose you wish to set aside Rs. 2,000 at the end of each of the next 10 years in an account paying 12 percent compounded annually. You accumulate at the end of 10 years an amount closest to?

(a) Rs. 22,456

(b) Rs. 35,098

(d) Rs. 20,324

Correct! Wrong!

8. In ten years you wish to own your business. How much will you have in your bank account at the end of the ten years if you deposit Rs. 300 each quarter? Assume end of the period deposits and assume that the account is paying an interest rate of 12% compounded quarterly?

(a) Rs. 230,127.30

(b) Rs. 30,000.00

(d) Rs. 22,620.38

Correct! Wrong!

9. Assume you are to receive a 20-year annuity with annual payments of Rs. 50. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 20. You will invest each payment in an account that pays 10 percent. What will be the value in your account at the end of Year 30?

(a) Rs. 6,354.81

(b) Rs. 7,427.83

(d) Rs. 8,591.00

Correct! Wrong!

10. A 5-year annuity due has periodic cash flows of Rs.100 each year. If the interest rate is 8 percent, the future value of this annuity is closest to which of the following equations?

(a) (Rs.100) (FVIFA at 8% for 5 periods)

(b) (Rs.100) (FVIFA at 8% for 4 periods) (1.08)

(d) (Rs.100) (FVIFA at 8% for 4 periods) + Rs.100

Correct! Wrong!

>> Read Future Value of Annuity.

Search

Back To Finance MCQs

Next To Present Value of Annuity MCQs

More Interest

Special Application of TVM

Special Application of TVM MCQs

Special Application of TVM Problems

Present Value of Perpetuity

Effective Interest Rate

References

Financial Management: Theory and Practice, Dr Eugene F Brigham & C Micheal Ehrhardt

Fundamentals of Financial Management: Concise Edition, Brigham Houston

The Economist Guide to Financial Management, John Tennet

Financial Management: Core Concepts, Raymond M Brooks

Future Value of Annuity MCQs

MCQs 1-10

Click The Option and See Result

1. Pension fund and insurance obligation is an example of?

2. You are getting payments of Rs. 8,000 at the beginning of every year and they are for five years. At 6%, what is the value of this annuity?

3. In ordinary annuity payments or receipts occur at?

4. Rental payment for apartment is an example of?

5. _______________ is the series of constant cash flows (CCF) over limited period of time?

6. Payment of car loan is an example of?

7. Suppose you wish to set aside Rs. 2,000 at the end of each of the next 10 years in an account paying 12 percent compounded annually. You accumulate at the end of 10 years an amount closest to?

8. In ten years you wish to own your business. How much will you have in your bank account at the end of the ten years if you deposit Rs. 300 each quarter? Assume end of the period deposits and assume that the account is paying an interest rate of 12% compounded quarterly?

10. A 5-year annuity due has periodic cash flows of Rs.100 each year. If the interest rate is 8 percent, the future value of this annuity is closest to which of the following equations?

Search

Related Topics

More Interest

Further Readings

References

0 Comments