1
CF Quiz 1 Ch 05 Key
11. You are investing $100 today in a savings account at your local bank. Which one of the following terms refers to the
value of this investment one year from now?
A.
future value
B.
present value
C.
principal amounts
D.
discounted value
E.
invested principal
Refer to section 5.1
26. Shelley won a lottery and will receive $1,000 a year for the next ten years. The value of her winnings today
discounted at her discount rate is called which one of the following?
A.
single amount
B.
future value
C.
present value
D.
simple amount
E.
compounded value
Refer to section 5.2
311. What is the relationship between present value and future value interest factors?
A.
The present value and future value factors are equal to each other.
B.
The present value factor is the exponent of the future value factor.
C.
The future value factor is the exponent of the present value factor.
D.
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 Fall '11
 Linney
 Finance, Future Value, Investing, Mathematical finance

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