Using a Present Value Table (HSC SSCE Mathematics Standard): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does present value of an annuity represent?
What does present value of an annuity represent?
Lump sum needed now to match future payments
In the formula , what does represent?
In the formula , what does represent?
Interest rate per period as a decimal
What is step 2 when using a present value table?
What is step 2 when using a present value table?
Find intersection of period and rate
Using intersection value 6.0021 with annual payment 9600 USD, what is the present value?
Using intersection value 6.0021 with annual payment 9600 USD, what is the present value?
57,620.16 USD
If annual interest is 24% compounded monthly, what is the interest rate per period?
If annual interest is 24% compounded monthly, what is the interest rate per period?
2%
For 12% p.a. compounded quarterly over 1 year, how many periods are there?
For 12% p.a. compounded quarterly over 1 year, how many periods are there?
4 periods
To find payment when PV is known, which formula should you use?
To find payment when PV is known, which formula should you use?
With PV 10,000 USD, intersection value 1.89, what is the payment per period?
With PV 10,000 USD, intersection value 1.89, what is the payment per period?
5,291 USD
What is a common mistake when dealing with quarterly compounding?
What is a common mistake when dealing with quarterly compounding?
Using years instead of total periods
Why is present value always less than future value?
Why is present value always less than future value?
It accounts for interest earned over time