Present & Future Values of Multiple Cash Flows


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question 1 of 3

Which of the following answers have two terms that are synonyms?

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1. If you want to compare investment opportunities, what must you calculate to ensure you are comparing apples-to-apples?

2. Which of the following is the formula to calculate the present value of a future payment?

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About This Quiz & Worksheet

Use this quiz and worksheet to review your understanding of present and future values of investments. You'll check your knowledge on calculating future payments to present value and predict incoming interests on investments.

Quiz & Worksheet Goals

This quiz and worksheet are provided as a review of:

  • The difference between present and future value
  • Key terms like inflation and cash flow
  • Formulas for calculating value
  • Figuring out investment returns

Skills Practiced

  • Knowledge application - ensure you can apply what you know of multiple cash flows to answer questions about present and future values of cash flows
  • Problem Solving - use what you know of investment formulas to solve investment problems for the present and future values
  • Defining key concepts - check your knowledge of concepts like inflation, future value, present value and cash flow

Additional Learning

Need to review this topic at a deeper level? Check out the provided lesson, Present & Future Values of Multiple Cash Flows, in order to learn more about:

  • How time affects money
  • What time value of money is
  • Present value versus future value
  • Finding the present value
  • Using tools for multiple cash flows