Time Value of Money Fundamentals

Test your understanding of the time value of money concept based on the video transcript.

Business mixed 8 Questions Video Quiz
Progress 0 / 8
Q1 Beginner 1 pts

If you were offered $100 today or $100 one year from today, which would you choose? Video Reference:
"what if I offered you a choice you can either have $100 today or you can have $100 one year from tod..."

Timestamp: 0:10

Q2 Beginner 1 pts

True or False: If you are offered $100 today or $12 one year from today, you would still choose the $100 today. Video Reference:
"now I'm going to offer you either $100 today or you can have $12 one year from today which option wi..."

Timestamp: 0:20

Q3 Intermediate 2 pts

Which of the following offers would make you prefer the future value over the present value? Video Reference:
"I will either give you $100 today or $110 one year from today which will you choose I'm willing to b..."

Timestamp: 0:40

Select all correct answers
Q4 Intermediate 2 pts

What is the time value of money, as calculated in the video? Video Reference:
"we have just found your time value of money so now that we know that $6 is the amount that I have to..."

Timestamp: 1:00

Q5 Advanced 3 pts

True or False: If the interest rate is 6% and the future value is $118 in 3 years, the present value is $100. Video Reference:
"you might be tempted to think well my interest rate 6% that means I get $6 a year so three years of ..."

Timestamp: 1:30

Q6 Advanced 3 pts

Which of the following formulas is used to calculate the future value (FV) of an amount? Video Reference:
"we're looking at our formula for future value which we'll call FV it is equal to the present value m..."

Timestamp: 1:10

Select all correct answers
Q7 Beginner 1 pts

What is the purpose of the time value of money concept? Video Reference:
"we now know that my $110 was a very appealing offer perhaps too appealing so what would be the amoun..."

Timestamp: 0:50

Q8 Intermediate 2 pts

True or False: The time value of money is always the same, regardless of the interest rate or time horizon. Video Reference:
"let's say that if I offered you 100 today versus 100 SP $6 in the future you are pretty much indiffe..."

Timestamp: 1:00

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