[
  {
    "Question": "What is the definition of the time value of money?",
    "Answer": "B",
    "Explanation": "The time value of money means that a sum of money is worth more now than the same sum will be in the future due to its potential earning capacity.",
    "PictureURL": "",
    "OptionA": "Money has the same value regardless of time.",
    "OptionB": "Money available now is worth more than the same amount in the future.",
    "OptionC": "Money loses value only due to inflation.",
    "OptionD": "Money value is fixed over time.",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Time Value of Money Basics",
    "Item": 1,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "Which formula is used to calculate the future value (FV) of a single sum invested today?",
    "Answer": "A",
    "Explanation": "The future value of a single sum is calculated as FV = PV × (1 + r)^n, where PV is present value, r is the interest rate per period, and n is the number of periods.",
    "PictureURL": "",
    "OptionA": "FV = PV × (1 + r)^n",
    "OptionB": "FV = PV / (1 + r)^n",
    "OptionC": "FV = PV × r × n",
    "OptionD": "FV = PV + r",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Future Value Calculation",
    "Item": 2,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "What does the present value (PV) represent in time value of money calculations?",
    "Answer": "C",
    "Explanation": "Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.",
    "PictureURL": "",
    "OptionA": "The amount of money you will have in the future.",
    "OptionB": "The total interest earned over time.",
    "OptionC": "The current value of a future amount discounted at a rate.",
    "OptionD": "The amount of money invested initially plus interest.",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Present Value Concept",
    "Item": 3,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "Which of the following is the correct formula for present value (PV) of a single future sum?",
    "Answer": "D",
    "Explanation": "Present value is calculated as PV = FV / (1 + r)^n, discounting the future value back to the present.",
    "PictureURL": "",
    "OptionA": "PV = FV × (1 + r)^n",
    "OptionB": "PV = FV + r × n",
    "OptionC": "PV = FV × r × n",
    "OptionD": "PV = FV / (1 + r)^n",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Present Value Formula",
    "Item": 4,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "An annuity is best described as:",
    "Answer": "B",
    "Explanation": "An annuity is a series of equal payments made at regular intervals over a period of time.",
    "PictureURL": "https://upload.wikimedia.org/wikipedia/commons/thumb/0/0e/Annuity.svg/300px-Annuity.svg.png",
    "OptionA": "A single lump sum payment made today.",
    "OptionB": "A series of equal payments at regular intervals.",
    "OptionC": "A loan with variable interest rates.",
    "OptionD": "An investment with no fixed payments.",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Annuity Definition",
    "Item": 5,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "What is the future value of an ordinary annuity?",
    "Answer": "A",
    "Explanation": "The future value of an ordinary annuity is the sum of all payments compounded to the end of the annuity period.",
    "PictureURL": "",
    "OptionA": "FV = P × [(1 + r)^n - 1] / r",
    "OptionB": "FV = P × (1 + r)^n",
    "OptionC": "FV = P / (1 + r)^n",
    "OptionD": "FV = P × n",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Future Value of Annuity",
    "Item": 6,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "Which formula calculates the present value of an ordinary annuity?",
    "Answer": "C",
    "Explanation": "The present value of an ordinary annuity is PV = P × [1 - (1 + r)^-n] / r, discounting each payment back to the present.",
    "PictureURL": "",
    "OptionA": "PV = P × (1 + r)^n",
    "OptionB": "PV = P × (1 + r)^-n",
    "OptionC": "PV = P × [1 - (1 + r)^-n] / r",
    "OptionD": "PV = P × n",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Present Value of Annuity",
    "Item": 7,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "If you invest $1,000 at an annual interest rate of 5% compounded annually, what will be the value after 3 years?",
    "Answer": "B",
    "Explanation": "Using FV = PV × (1 + r)^n = 1000 × (1.05)^3 = 1157.63 approximately.",
    "PictureURL": "",
    "OptionA": "$1,150.00",
    "OptionB": "$1,157.63",
    "OptionC": "$1,200.00",
    "OptionD": "$1,050.00",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Future Value Calculation Example",
    "Item": 8,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "You want to receive $500 annually for 4 years. If the discount rate is 6%, what is the present value of this annuity?",
    "Answer": "C",
    "Explanation": "Using PV of annuity formula: PV = 500 × [1 - (1 + 0.06)^-4] / 0.06 ≈ $1,676.23.",
    "PictureURL": "",
    "OptionA": "$2,000.00",
    "OptionB": "$1,500.00",
    "OptionC": "$1,676.23",
    "OptionD": "$1,200.00",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Present Value of Annuity Example",
    "Item": 9,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "Which of the following best describes an annuity due?",
    "Answer": "D",
    "Explanation": "An annuity due consists of payments made at the beginning of each period, unlike an ordinary annuity where payments are at the end.",
    "PictureURL": "",
    "OptionA": "Payments made at the end of each period.",
    "OptionB": "A single payment made today.",
    "OptionC": "Payments made irregularly.",
    "OptionD": "Payments made at the beginning of each period.",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Annuity Due Definition",
    "Item": 10,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "How does the future value of an annuity due compare to an ordinary annuity, assuming the same payments and interest rate?",
    "Answer": "A",
    "Explanation": "Because payments are made earlier in an annuity due, its future value is higher than that of an ordinary annuity.",
    "PictureURL": "",
    "OptionA": "It is higher because payments are invested for one additional period.",
    "OptionB": "It is lower because payments are made earlier.",
    "OptionC": "They are equal.",
    "OptionD": "It depends on the interest rate only.",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Future Value Comparison",
    "Item": 11,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "Which of the following affects the present value of a future sum the most?",
    "Answer": "C",
    "Explanation": "The discount rate has the greatest impact on present value; higher rates reduce present value significantly.",
    "PictureURL": "",
    "OptionA": "The future value only.",
    "OptionB": "The number of payments only.",
    "OptionC": "The discount rate used.",
    "OptionD": "The payment frequency only.",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Factors Affecting Present Value",
    "Item": 12,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "If interest is compounded semi-annually, how many compounding periods are there in 5 years?",
    "Answer": "B",
    "Explanation": "Semi-annual compounding means 2 periods per year, so 5 years × 2 = 10 periods.",
    "PictureURL": "",
    "OptionA": "5",
    "OptionB": "10",
    "OptionC": "2.5",
    "OptionD": "20",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Compounding Periods Calculation",
    "Item": 13,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "What is the effect of increasing the number of compounding periods per year on the future value of an investment?",
    "Answer": "A",
    "Explanation": "Increasing compounding frequency increases the future value because interest is calculated and added more often.",
    "PictureURL": "",
    "OptionA": "Future value increases due to more frequent compounding.",
    "OptionB": "Future value decreases because interest rates drop.",
    "OptionC": "Future value remains the same.",
    "OptionD": "Future value depends only on the principal.",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Effect of Compounding Frequency",
    "Item": 14,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  },
  {
    "Question": "Which of the following best describes a perpetuity?",
    "Answer": "D",
    "Explanation": "A perpetuity is an annuity that continues forever, paying a constant amount at regular intervals indefinitely.",
    "PictureURL": "",
    "OptionA": "An annuity with payments increasing each period.",
    "OptionB": "An annuity with payments only once.",
    "OptionC": "An annuity with payments for a fixed number of years.",
    "OptionD": "An annuity with payments continuing forever.",
    "OptionE": "",
    "OptionF": "",
    "OptionG": "",
    "TestName": "Time Value of Money Practice Test",
    "Content Type": "multiple choice",
    "Title": "Perpetuity Definition",
    "Item": 15,
    "Type": "multiple choice",
    "Path": "Subtopics: — Time value of money – present value, future value, annuities"
  }
]