Financial Mathematics flashcards
8 practice cards drawn from the Financial Mathematics lessons. Tap a card to turn it over. Every answer is checked against the lesson it came from.
Read the Financial Mathematics lessons in full →
PV = $2000, I = 4%, N = 2, PMT = 0. What is FV?
$2163.20
from “The Time Value of Money”
$2000 is due in 3 years. What is it worth today at 6% a year?
$1679.24
from “The Time Value of Money”
$2000 grows at 8% a year for 4 years while prices rise 4% a year. What is it worth in today’s money?
$2325.90
from “Real Value After Inflation”
$5000 grows at 10% a year for 4 years while prices rise 2% a year. What is it worth in today’s money?
$6763.01
from “Real Value After Inflation”
The payments on a loan are all equal. What happens to the split inside them?
the interest part falls and the principal part grows
from “Amortizing a Loan”
A $150000 loan at 0.5% a month is down to $70000. How much of the next $1200 payment is interest?
$350.00
from “Amortizing a Loan”
$2000 saved at the end of each year for 4 years, at 10%. What has it grown to by the end?
$9282.00
from “The Value of an Annuity”
Five yearly payments of $1000. Why is the stream worth less than $5000 today?
money arriving later is worth less today
from “The Value of an Annuity”