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Time value of money: Quiz


Question 1: Similarly, the present value formula can be rearranged to determine what ________ is needed to accumulate a given amount from an investment.
Financial ratioEfficient-market hypothesisRate of returnFundamental analysis

Question 2: In that case the discount factor, and thus the present value, of a cash flow at time T is given by the ________ of the continuously compounded rate r(t):
Continuous functionIntegralDerivativeCalculus

Question 3: For example, the present value at time 0 of a future payment at time t can be restated in the following way, where e is the base of the ________ and r is the continuously compounded rate:
Euler's formulaLeonhard EulerExponential functionNatural logarithm

Question 4: For the period of time needed to double an investment, the ________ is a useful shortcut that gives a reasonable approximation of the period needed.
Rule of 72InterestFuture valueTime value of money

Question 5: If you are using a financial calculator or a ________, you can usually set it for either calculation. CalcMicrosoft Excel

Question 6: Ordinary and partial ________ (ODEs and PDEs) – equations involving derivatives and one (respectively, multiple) variables are ubiquitous in more advanced treatments of financial mathematics.
Applied mathematicsCalculusDynamical systems theoryDifferential equation

Question 7: This is the well known Gordon Growth model used for ________.
Fundamental analysisStock valuationEfficient-market hypothesisStock selection criterion

Question 8: See ________ for details on converting between different periodic interest rates.
Euler's identityEuler's formulaExponential functionCompound interest

Question 9: The time value of money is the value of money figuring in a given amount of ________ earned over a given amount of time.
Bond (finance)DebtCredit (finance)Interest

Question 10: For example, stocks are commonly noted as trading at a certain ________.
Market capitalizationP/E ratioStock marketFundamental analysis

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