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Time Value of Money Quiz 1 ( Reading 6, CFA Level I)

Time Value of Money (CFA L1) Time Value of Money Quiz 1 ( Reading 6, CFA Level I)

Practice Quiz for CFA Level I Reading 6 – Time Value of Money

Time Value of Money Quiz 1 ( Reading 6, CFA Level I)

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  1. Question 1 of 5
    1. Question

    A successful business man wants to provide scholarships for the education of intelligent but needy children. He plans to setup a fund that will be used to give out donations worth $20,000 every year in perpetuity. He will start giving these scholarships 5 years from now. He plans to deposit a lump sum today that will grow at a rate of 10% compounded semi-annually. How much lump sum should he deposit today to be able to meet the requirements of the perpetuity?

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  2. Question 2 of 5
    2. Question

    An investor deposits a sum of $5,000 in a savings scheme that provides an interest of 7% compounded monthly. How much will his investment grow to in 5 years?

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  3. Question 3 of 5
    3. Question

    An investor made an investment of $10,000 in a fixed deposit. After 5 years, he received an amount of $15,000. Assuming semi-annual compounding, what is the effective annual rate earned on the investment?

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  4. Question 4 of 5
    4. Question

    An investor wants to have saved $10,000 in a period of 3 years. How much should he invest today to reach his target in 5 years when his investment account earns 9% per annum?

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  5. Question 5 of 5
    5. Question

    Ken Atkins had taken a 30-year mortgage of $100,000 for his home 5 years back. The interest rate on the mortgage is a fixed rate of 12% per annum. He has been paying equated monthly payments on the loan. What will be the current loan balance?

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In this Course

Course Home
Introduction – Time Value of Money
Interest Rates
Interest Rate Equation
Nominal Interest Rate and Effective Yield
Time Value of Money for Different Compounding Frequencies
Future Value of a Single Cash Flow
Present Value of a Single Cash Flow
Future Value and Present Value of Ordinary Annuity
Present Value and Future Value of Annuity Due
Present Value of a Perpetuity
Present Value and Future Value of Uneven Cash Flows
Annuities with Different Compounding Frequencies
Using a Timeline to Solve Time Value of Money Problems
Time Value of Money Quiz 1 ( Reading 6, CFA Level I)
Return to Time Value of Money (CFA L1)

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