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:

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 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:

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 —