Top 350+ Solved Information systems and engineering economics MCQ Questions Answer

Q. At 8% interest, what is the equivalent worth of $2,042 after 5 years from now?

a. 5000

b. 4000

c. 2000

d. 3000

Q. If you had $2,000 now and invested it at 10%, how much would it be worth in 8 years?

a. 4200

b. 4287

Q. Money has a time value because its purchasing power changes over time (inflation).

a. true

b. false

Q. Interest is the cost of moneyas a cost to the borrower and an earning to the lender

a. true

b. false

Q. Cash Flow is the movement of money (in or out) of a project

a. true

b. false

Q. the practice of charging an interest rate to an initial sum and to any previously accumulated interest that has not been withdrawn.

a. compound interest

b. simple interest

Q. Given P = $1,000 , i = 8% and N = 3 years calculate future value using Compound interest

a. 1200

b. 1259.71

Q. Calculate future value on the principal amount of Rs. 2000 at the interest rate of 6% for the period of 5 years using simple interest

a. 1200

b. 1259.71

c. 2600

d. none

Q. If you deposit $100 now (n = 0) and $200 two years from now (n = 2) in a savings account that pays 10% interest, how much would you have at the end of year 10?

a. 900

b. 688

c. 500

d. none

Q. Economic equivalence refers to the fact that a cash flow-whether a single payment or a series of payments-can be converted to an equivalent cash flow at any point in time.

a. true

b. false

Q. If you deposit P dollars today for N periods at i, you will have F dollars at the end of period N.

a. true

b. false

Q. You want to set aside a lump sum amount today in a savings account that earns 7% annual interest to meet a future expense in the amount of $10,000 to be incurred in 6 years. How much do you need to deposit today?

a. 5000

b. 6663

Q. A fund accumulated by periodic deposits and reserved exclusively for a specific purpose, such as retirement of a debt

a. sinking fund

b. principal

Q. A fund created by making periodic deposits (usually equal) at compound interest in order to accumulate a given sum at a given future time for some specific purpose is sinking fund

a. true

b. false

Q. the practice of charging an interest rate only to an initial sum (principal amount) is _______

a. compound interest

b. simple interest

Top 350+ Solved Information systems and engineering economics MCQ Questions Answer

From 286 to 300 of 371

Q. At 8% interest, what is the equivalent worth of $2,042 after 5 years from now?

Q. If you had $2,000 now and invested it at 10%, how much would it be worth in 8 years?

Q. Money has a time value because its purchasing power changes over time (inflation).

Q. Interest is the cost of moneyas a cost to the borrower and an earning to the lender

Q. Cash Flow is the movement of money (in or out) of a project

Q. the practice of charging an interest rate to an initial sum and to any previously accumulated interest that has not been withdrawn.

Q. Given P = $1,000 , i = 8% and N = 3 years calculate future value using Compound interest

Q. Calculate future value on the principal amount of Rs. 2000 at the interest rate of 6% for the period of 5 years using simple interest

Q. If you deposit $100 now (n = 0) and $200 two years from now (n = 2) in a savings account that pays 10% interest, how much would you have at the end of year 10?

Q. Economic equivalence refers to the fact that a cash flow-whether a single payment or a series of payments-can be converted to an equivalent cash flow at any point in time.

Q. If you deposit P dollars today for N periods at i, you will have F dollars at the end of period N.

Q. You want to set aside a lump sum amount today in a savings account that earns 7% annual interest to meet a future expense in the amount of $10,000 to be incurred in 6 years. How much do you need to deposit today?

Q. A fund accumulated by periodic deposits and reserved exclusively for a specific purpose, such as retirement of a debt

Q. A fund created by making periodic deposits (usually equal) at compound interest in order to accumulate a given sum at a given future time for some specific purpose is sinking fund

Q. the practice of charging an interest rate only to an initial sum (principal amount) is _______

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