annuities and present values

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Dollar amount of mortgage loan multiplied monthly payment of mortgage loan per dollar is used to calculate

Dollar amount of mortgage loan multiplied monthly payment of mortgage loan per dollar is used to calculate
  • A. semiannually mortgage payment
  • B. daily mortgage payment
  • C. monthly mortgage payment
  • D. annually mortgage payment
  • Correct Answer: Option C

Portion of formula used to calculate equal payment annuity [(1+i)n -1]⁄i(1+i)n is classified as

Portion of formula used to calculate equal payment annuity [(1+i)n -1]⁄i(1+i)n is classified as
  • A. series future growth factor
  • B. series present worth factor
  • C. series future worth factor
  • D. series present growth factor
  • Correct Answer: Option B

Formula used for annuity A as R[(1+i)n -1]⁄i(1+i)n used to calculate

Formula used for annuity A as R[(1+i)n -1]⁄i(1+i)n used to calculate
  • A. future value of annuity
  • B. nominal value of annuity
  • C. sinking value of annuity
  • D. present value of annuity
  • Correct Answer: Option D

Process of loan repayment by installment payments is classified as

Process of loan repayment by installment payments is classified as
  • A. amortizing a loan
  • B. depreciation a loan
  • C. appreciation of loan
  • D. appreciation of investment
  • Correct Answer: Option A

Amount of money today which is equal to series of payments in future

Amount of money today which is equal to series of payments in future
  • A. nominal value of annuity
  • B. sinking value of annuity
  • C. present value of annuity
  • D. future value of annuity
  • Correct Answer: Option C