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Mathematical Modeling: Financial Mathematics and Economics

Mathematical Modeling: Financial Mathematics and Economics Quiz

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is the formula for the present value of a single sum?

  1. PV = FV / (1 + r)^n
  2. PV = FV * (1 + r)^n
  3. PV = FV / (1 - r)^n
  4. PV = FV * (1 - r)^n
Question 2 Multiple Choice (Single Answer)

What is the formula for the future value of a single sum?

  1. FV = PV * (1 + r)^n
  2. FV = PV / (1 + r)^n
  3. FV = PV * (1 - r)^n
  4. FV = PV / (1 - r)^n
Question 3 Multiple Choice (Single Answer)

What is the formula for the present value of an annuity?

  1. PV = PMT * ((1 - (1 + r)^-n) / r)
  2. PV = PMT * ((1 + (1 + r)^-n) / r)
  3. PV = PMT * ((1 - (1 - r)^-n) / r)
  4. PV = PMT * ((1 + (1 - r)^-n) / r)
Question 4 Multiple Choice (Single Answer)

What is the formula for the future value of an annuity?

  1. FV = PMT * (((1 + r)^n - 1) / r)
  2. FV = PMT * (((1 - r)^n - 1) / r)
  3. FV = PMT * (((1 + r)^-n - 1) / r)
  4. FV = PMT * (((1 - r)^-n - 1) / r)
Question 5 Multiple Choice (Single Answer)

What is the formula for the internal rate of return (IRR) of an investment?

  1. IRR = (FV - PV) / PV
  2. IRR = (FV + PV) / PV
  3. IRR = (FV - PV) / FV
  4. IRR = (FV + PV) / FV
Question 6 Multiple Choice (Single Answer)

What is the formula for the net present value (NPV) of an investment?

  1. NPV = FV - PV
  2. NPV = FV + PV
  3. NPV = PV - FV
  4. NPV = PV + FV
Question 7 Multiple Choice (Single Answer)

What is the formula for the payback period of an investment?

  1. Payback Period = Initial Investment / Annual Cash Flow
  2. Payback Period = Annual Cash Flow / Initial Investment
  3. Payback Period = Initial Investment * Annual Cash Flow
  4. Payback Period = Annual Cash Flow * Initial Investment
Question 8 Multiple Choice (Single Answer)

What is the formula for the profit margin of a company?

  1. Profit Margin = Net Income / Revenue
  2. Profit Margin = Net Income / Cost of Goods Sold
  3. Profit Margin = Revenue / Net Income
  4. Profit Margin = Cost of Goods Sold / Net Income
Question 9 Multiple Choice (Single Answer)

What is the formula for the return on equity (ROE) of a company?

  1. ROE = Net Income / Shareholders' Equity
  2. ROE = Shareholders' Equity / Net Income
  3. ROE = Net Income * Shareholders' Equity
  4. ROE = Shareholders' Equity * Net Income
Question 10 Multiple Choice (Single Answer)

What is the formula for the debt-to-equity ratio of a company?

  1. Debt-to-Equity Ratio = Total Debt / Shareholders' Equity
  2. Debt-to-Equity Ratio = Shareholders' Equity / Total Debt
  3. Debt-to-Equity Ratio = Total Debt * Shareholders' Equity
  4. Debt-to-Equity Ratio = Shareholders' Equity * Total Debt
Question 11 Multiple Choice (Single Answer)

What is the formula for the current ratio of a company?

  1. Current Ratio = Current Assets / Current Liabilities
  2. Current Ratio = Current Liabilities / Current Assets
  3. Current Ratio = Current Assets * Current Liabilities
  4. Current Ratio = Current Liabilities * Current Assets
Question 12 Multiple Choice (Single Answer)

What is the formula for the quick ratio of a company?

  1. Quick Ratio = (Current Assets - Inventory) / Current Liabilities
  2. Quick Ratio = (Current Assets + Inventory) / Current Liabilities
  3. Quick Ratio = (Current Assets - Inventory) * Current Liabilities
  4. Quick Ratio = (Current Assets + Inventory) * Current Liabilities
Question 13 Multiple Choice (Single Answer)

What is the formula for the inventory turnover ratio of a company?

  1. Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
  2. Inventory Turnover Ratio = Average Inventory / Cost of Goods Sold
  3. Inventory Turnover Ratio = Cost of Goods Sold * Average Inventory
  4. Inventory Turnover Ratio = Average Inventory * Cost of Goods Sold
Question 14 Multiple Choice (Single Answer)

What is the formula for the days sales outstanding (DSO) of a company?

  1. DSO = (Average Accounts Receivable / Revenue) * 365
  2. DSO = (Revenue / Average Accounts Receivable) * 365
  3. DSO = (Average Accounts Receivable - Revenue) * 365
  4. DSO = (Revenue - Average Accounts Receivable) * 365
Question 15 Multiple Choice (Single Answer)

What is the formula for the working capital of a company?

  1. Working Capital = Current Assets - Current Liabilities
  2. Working Capital = Current Liabilities - Current Assets
  3. Working Capital = Current Assets + Current Liabilities
  4. Working Capital = Current Liabilities + Current Assets
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