Principles of Finance Test Bank – Chapter 5 (Ch5) principles of finance test bank finance chapter 5 questions corporate finance practice questions financial management notes finance exam prep

PrinciplesofFinance-TestBank-Ch8.docx PrinciplesofFinance-TestBank-Ch8.docx PrinciplesofFinance-TestBank-Ch8.docx
TEST BANK
Principles of Finance


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PrinciplesofFinance-TestBank-Ch8.docx PrinciplesofFinance-TestBank-Ch8.docx PrinciplesofFinance-TestBank-Ch8.docx

, PrinciplesofFinance-TestBank-Ch8.docx PrinciplesofFinance-TestBank-Ch8.docx PrinciplesofFinance-TestBank-Ch8.docx



Principles of Finance



Chapter 8
Test Bank
Time Value of Money II: Equal Multiple Payments

These questions and problems can all be solved in a classroom setting using a handheld
financial calculator.

True or False Questions
1. The present value of an annuity due will higher be than that of an ordinary annuity.
A. True
B. False
Section 8.2 LO 3 Easy
2. Amortizing a loan via equal payments will result in the early payments being composed more
of interest than principal repayments.
A. True
B. False
Section 8.3 LO 3 Easy
3. If correctly calculated, a loan amortization schedule will bring the balance remaining due on
the loan to zero upon reaching its due date.
A. True
B. False
Section 8.3 LO 3 Easy

Multiple Choice Questions
1. What is the present value of a constant perpetuity of $17 per year if the discount rate is 10
percent?
A. $188
B. $170
C. $165
D. $190
Section 8.1 LO 2 Easy




03/30/22 2


PrinciplesofFinance-TestBank-Ch8.docx PrinciplesofFinance-TestBank-Ch8.docx PrinciplesofFinance-TestBank-Ch8.docx