1-The process of getting the present value of a known future value is called ........................ .

Select one: a. interest rate b. compounding c. discounting d. time value of money

2-Mohammed needs SR 5,000 in 3 years from now, how much should he invest in a saving account with 5% interest rate?

Select one: a. 4329 b. 4350 c. 4319 d. 4900

3-The process of getting the present value of a known future value is called ........................ .

Select one: a. interest rate b. compounding c. discounting d. time value of money

4- Year1 1,000

Year2 1,200

Year3 1,500

The present value for the above cash flows if r=10% is ......................... .

Select one: a. 3000 b. 3028 c. 3023 d. 3082

5-............ is the value today of a future cash flow or series of cash flows.

Select one: a. compounding b. future value c. discounting d. present value