Value which converts series of equal payments in to value received at beginning of investment is classified as

A decreased value of annuity
B increased value of annuity
C present value of annuity
D future value of annuity

Correct Answer: present value of annuity

Value which converts series of equal payments in to value received at beginning of investment is classified as present value of annuity. An annuity is a financial product that pays out a fixed stream of payments to an individual. Annuities exist first in an accumulation phase, whereby investors fund the product with either a lump-sum or periodic payments.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

Value which converts series of equal payments in to value received at end time of investment is classified as
A present value of annuity
B future value of annuity
C decreased value of annuity
D increased value of annuity
A and B started a business jointly. A's investment was thrice the investment of B and the period of his investment was two times the period of investment of B. If B received Tk. 4000 as profit, then their total profit is :
A Tk. 16,000
B Tk. 20,000
C Tk. 24,000
D Tk. 28,000
Stock which has fixed payments and failure of payments which do not lead to bankruptcy is classified as
A common stock
B preferred stock
C bonds equity
D common shares
One-third of Ratan's investment in National Savings Certificate is equal to one-half of his investment in FDR. If he has Tk. 1,50,000 as total investment, how much he invested in savings certificate?
A Tk. 30,000
B Tk. 50,000
C Tk. 60,000
D Tk. 90,000
A television with a price of $300 is to be purchased with an initial payment of $60 and weekly payments of $30. Which of the following equations can be used to find the number of weekly payments, required to complete the purchase, assuming there are no taxes of free?
A 300 = 30w - 60
B 300 = 60w - 30
C 300 = 30w + 60
D 300 = 30w
A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.
A bundling
B un-bundling
C financial engineering
D credit enhancement
E B & C
Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called
A float-fixed swaps
B interest rate swaps
C indexed swaps
D counter party swaps
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as
A relevant purchase order costs
B relevant inventory carrying costs
C irrelevant inventory carrying costs
D relevant opportunity cost of capital
A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as
A Perpetuity
B Capital charge factor
C Annuity
D Future worth
A type of security payment in which payments are made at equal intervals of time and each payment amount is same is classified as
A fixed interval investment
B fixed payment investment
C annuity
D lump sum amount

Next steps