1. Method of calculating future value is called?

2. Method of calculating present value is called?

3. Interest received on interest principal is called?
4. Interest received on principal is called?
5. The real return on a savings account or any interest-paying investment is called?
6. The decline of purchasing power of a given currency over time is called?
7. How is the amount of interest calculated for each year on loan amortization
schedule?
8. Which character represents the compounding number of a year?
9. Why doesn’t 100 taka from today doesn’t represent the same value 10 year later?
10. What should be considered before taking a loan?
11. What is the main reason for calculating the time value of money?
12. Series of payments made at equal intervals at the end of a time period is called?
13. Series of payments made at equal intervals at the beginning of a time period is
called?
14. The excess/residue cost of currency is called?
15. The method popularly used to estimate the number of years/interest rate required to
double the invested money is called?
16. What elements do loan installments contain?
17. What does a time-line indicate?
18. If Mr. Arnob deposits 50,000 taka on bank for 6 years, at what interest rate will it be
doubled?
19. The relation of Future value & compounding is?
20. The relation of Present value & compounding is?
21. What is another name of Marginal value?
22. On what basis does a bank do compounding?
23. Time value of money notion is highly used for what purpose?
24. 2,000 Taka loan taken from ABC bank which has to be settled within 4 years & the
rate of interest is 10%, what is the amount per installment?
25. Series of payments made at equal intervals of a time period is called?
26. If the discount rate is high, present value increases /decreases?
27. The forgone benefit that would have been derived by an option not chosen is called?
28. The general rule estimating how long it will take for an investment to double,
assuming half yearly compounding interest is called?
29. The rate of interest depends on what?
30. The relation of time & future value is?
31. The relation of time & present value is?
32. If a person deposits 1000 taka at the end of every year for 5 year at a rate of interest
of 7%, how much will it be valued?
33. If the interest rate is 12% assuming monthly compounding, what is the EIR?
34. Increase in the prices of daily commodities is called?
35. Mr. Dhruvo deposits 1,00,000 at 10% interest at prime bank, assuming half yearly
compounding, what is the time period for the deposit to be doubled?
36. Rent or Lease is what kind of annuity?
37. Which interest is beneficial for investors?
38. Effective Interest Rate & Nominal Rate of Interest are equal when___?
39. Half yearly interest is paid in terms of____?
40. What are the types of annuity?
Answers:
1. Compounding.
2. Discounting.
3. Compound interest.
4. Nominal Interest.
5. Effective Interest Rate-EIR
6. Inflation
7. On remaining loan.
8. m
9. Time value of money
10. Loan repayment capacity
11. rate of interest
12. Simple annuity
13. Advance annuity
14. rate of interest
15. Rule-72
16. Interest & Principal
17. Time value of money
18. 72/6=12%
19. Proportionate
20. Disproportionate
21. Future Value
22. Monthly basis
23. Investment decision evaluation
24. 2000=PMT[ 1-{1/(1+.10)^4}/ 10]= 630.93 Tk.
25. Annuity
26. Decresces
27. Opportunity cost
28. Rule-69
29. Inflation
30. Proportionate
31. Disproportionate
32. 5750.71
33. 12.68%
34. Inflation
35. 7.25
36. Advance annuity
37. Compounding
38. When assuming annual compounding
39. Compounding
40. 2 types. Simple & Advance