#21
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Re: Econ Sample Test Question
I also say it's PV.
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#22
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Re: Econ Sample Test Question
this question is uber stupid.
present value is basically that a dollar today is worth more than a dollar 1 year from now (or any amount of time in the future). to get what a dollar a year from now would equal, one has to discount the cashflow back over time by some interest rate (or discount rate). the question is dumb because present value and future value are very closely related. different finance questions may ask you the future value of a dollar given to you today, or the present value of a dollar given to you a year from now. this question isnt really that clear, but given its wording i would have to say the answer is present value. |
#23
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Re: Econ Sample Test Question
Present Value of Future Cashflow = Future Cash Flow / (1 + Interest Rate)^N years
(for lump sum payments) Intro to Financial Accounting FTW! |
#24
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Re: Econ Sample Test Question
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#25
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Re: Econ Sample Test Question
Ok, well, this question wasn't even on the test. He did have a similar question, but the answer was "discounting."
Overall, the test was easier than I expected. |
#26
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Re: Econ Sample Test Question
[ QUOTE ]
It is definitely present value. [/ QUOTE ] |
#27
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Re: Econ Sample Test Question
Present value is the best answer out of those provided, but I think "time value of money" is the most appropriate.
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#28
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Re: Econ Sample Test Question
the answer as phrased is present value, imo.
problem with the question is the same concept is used to calculate future value...it would just be phrased in a minorly different way. Barron |
#29
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Re: Econ Sample Test Question
im an econ major
it's present value |
#30
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Re: Econ Sample Test Question
Well I took the test last thursday. I "should" be getting my grade tomorrow (tuesday). I'll let everyone know how I did.
BTW, incase it wasn't noticed, that question wasn't even on the test. |
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