Home > CompTIA Security+ Certification > Quizzes > Personal Finance: Understanding and Appreciating the Time Value of Money
Personal Finance: Understanding and Appreciating the Time Value of Money
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 43% • Most missed: “If Monica invests $15,750 at 8 percent annual interest, how much would she have …”

The time value of money is the widely accepted idea that there is greater benefit to receiving a sum of money now rather than an identical sum later.

Personal Finance: Understanding and Appreciating the Time Value of Money
Time left 00:00
25 Questions

1. The current value in today's dollars of a future sum of money is called
2. A perpetuity is an annuity where the payments
3. Which financial planning concepts should be helpful to a couple planning for how much money to start saving for their retirement?
4. Which one of the following is the 'enemy' of compound interest and makes it very difficult to reach your financial goals?
5. Mark borrows $15,000 to buy a new car- His loan has an interest rate of 6.5%, compounded monthly, and his monthly payment is $293.49- If instead his loan had an interest rate of 8%, how much more would he have paid in interest by the time he finished repaying his loan in 60 months?
6. A compound annuity uses the principles of
7. Sam's uncle promised to give him $7,000 when he graduates from college three years from now. Assuming an interest rate of 8 percent compounded annually, what is the value of Sam's gift right now?
8. The dollar value of an investment at some future point in time is also known as
9. What is the annual interest rate earned on a deposit that grew from $250 to $502.84 over the last years?
10. Charlie is starting to save for his retirement now at age 20- If inflation averages 4% annually until his retirement age and he earns an annual rate of return of 4% on his investments during this period, then he should be able to enjoy a very comfortable retirement when he is retired.
11. At the age of 20, James is starting to save for retirement- If inflation averages 4 percent annually until his retirement age and he earns an average annual rate of return of 13 percent on his investments during this period, he should be able to enjoy a comfortable retirement.
12. What is the present value of an IOU for $1,000 due to be paid in two years, if the discount rate is %?
13. You just purchased a vacant lot for your future son-in-law's home for $30,000- You financed that amount over 120 months- What would your monthly payment be if your interest rate was 12 % compounded monthly?
14. What is the present value of $500 received at the end of each of the next five years worth to you today at the appropriate discount rate of 6 percent?
15. Generally speaking, regularly saving a little money when you are young can result in a large final payoff.
16. Using the Rule of 72, if it will take approximately 12 years for your money to double, at what annually compounded interest rate is it invested?
17. Allowing the interest that you earn on an investment to stay in the investment and to earn interest on the interest you have already earned is called what?
18. By the Rule of 72, what annual interest rate would be required to turn $100 into $200 in approximately six years?
19. If you set your calculator to the 'end' mode your calculator will assume cash flows occur at the end of each time period.
20. The ________ Principle states that a dollar today is worth more than a dollar in the future.
21. You have just remembered that four years ago you placed $1,000 in a bank account- If the bank was paying an annual rate of return of 8% during that time, how much should you have in your forgotten account?
22. How much did you borrow if your annual payments are $5,000 for the next seven years and the interest rate is 9%?
23. Your great-uncle placed $500 a year in a bank account for your 'college fund' for each of the last 18 years- How much is now in your college account (at the end of the eighteenth year) if your account earned an annual rate of return of 6%?
24. In an amortized loan the earlier payments have a larger portion of the payment going to pay interest and a smaller portion of the payment to pay down the principle.
25. An annuity is a series of unequal dollar payments coming at the end of each time period for a specified number of time periods.

⚡ Recently practiced quizzes in this topic
Live quiz activity
CompTIA Security+ Certification Exam CompTIA Cybersecurity Analyst Plus CySA+ CS0-001 Questions CompTIA Security+ SY0-601 Certification Exam Terms To Know Hardening Pentest+ CySA+ (CS0-002) Review Questions Physical Security Cybersecurity Assessment Test Virtualization (And Security) Overview of Security
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.