CM 2113 Test 1 & 2- Chao Wang questions with answers

CM 2113 Test 1 & 2- Chao Wang
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questions with answers |\ |\




Payments that differ in amount may be equal if made at
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different points in time is known as ____________.
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Select one: |\




a. Monetary values
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b. Time value
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c. Equivalence
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d. Equality
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c. Equivalence
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The Time Value of money is based on the premise that
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money can generate _______ over a period of time.
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Select one: |\




a. Equipment
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b. Interest
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c. Capital
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d. Budgets
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b. Interest
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,Comparing a future cost of one alternative with the
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present worth cost of a second alternative is valid and
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meaningful.
Select one: |\




True
False
False




The reason why the value of money increases with time is
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because of the interest rate.
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Select one: |\




True
False
True




Look up the following factor value in the given reference
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table.
(P/F, 5%, 6) |\ |\




Select one: |\




a. 0.147
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, b. 0.746
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c. 1.340
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d. 0.784
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b. 0.746
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Look up the following factor value in the given reference
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table.
(P/A, 10%, 15)
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Select one: |\




a. 0.031
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b. 4.177
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c. 7.606
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d. 0.131
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c. 7.606
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Look up the following factor value in the given reference
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table.
(A/F, 2%, 8)
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Select one: |\