1. What is the other term for economic value? a. fair market value b. future value c. general annuity d. present value
2. The formula (1+) − 1 is used to determine the __________ of an ordinary annuity. a. annuity b. cash flow c. future value d. present value
3. What is the future value of a semi-annual payments of ₱ 8,000 for 12 years with interest rate of 12% compounded semi-annually? a. ₱ 407,524.60 b. ₱ 408,524.60 c. ₱ 405,524.60 d. ₱ 406,524.60
4. Cash ___________ can be presented by positive numbers. a. flows b. inflows c. outflows d. value
5. How much is the original selling price of shoes being sell by the vendor if
Cedric offers to buy it at ₱ 1,000 and they agreed at its fair market value of
₱ 1,150?
a. ₱ 1,200
b. ₱ 1,100
c. ₱ 1,000
d. ₱1,300
6. It is the price an asset would sell for on the open market when certain
conditions are met.
a. annuity
b. cash flow
c. down payment
d. fair market value
7. What is the present value of an ordinary annuity having semi-annual
payments of ₱8,000 for 12 years with an interest rate of 12% compounded
semi-annually?
a. ₱ 110,402.90
b. ₱ 100,402.90
c. ₱ 105,402.90
d. ₱ 103,402.90
8. Cash ____________ can be represented by a negative number.
a. flows
b. inflows
c. outflows
d. value
9. It is an annuity where the length of the payment interval is not the same as
the length of the interest compounding period.
a. cash flow
b. fair market value
c. general annuity
d. general ordinary annuity
10. The formula 1−(1+
)−
is used to determine the __________ of an ordinary
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