Future Value of Annuity – Finance MCQ for Exams

1 FINANCE MCQS

mcq_question: The value that converts a series of equal payments into the value received at the end of an investment is called ____________?

Present value of annuity
Future value of annuity
Decreased value of annuity
Increased value of annuity

Correct Answer: B. Future value of annuity

Detailed Explanation

The future value of an annuity represents the amount accumulated at the end of a specified period when equal payments are made at regular intervals and compounded at a given interest rate.

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mcq_question: The value that converts a series of equal payments into the value received at the end of an investment is called ____________?

mcq_question: The value that converts a series of equal payments into the value received at the end of an investment is called ____________?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…