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Time Value of Money MCQs 2026

70 questions with detailed answers · 29 from past papers · 7 quiz batches available

📚 Finance 📄 29 Past-Paper Qs ✓ Free · No Login Needed
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Read each question, think about the answer, then click Show Answer to reveal the correct option and explanation. Load 10 at a time so it stays manageable — perfect for one-topic study sessions on the bus or during a break.

Page 1 of 1 Questions 1–10 of 70
  1. Q1 medium

    TVM discounting 4: present value of Rs 20,600 in 5 years at 9% is approximately

    1. A Rs 13,389
    2. B Rs 17,510
    3. C Rs 18,899
    4. D Rs 20,600
    💡 Explanation:

    PV = FV/(1+r)^n.

  2. Q2 Past Paper · PPSC/FPSC/NTS medium

    TVM problem 55: Rs 104,500 at 15% compounded annually for 8 years grows to approximately

    1. A Rs 120,175
    2. B Rs 319,668
    3. C Rs 229,900
    4. D Rs 486,175
    💡 Explanation:

    FV = PV × (1+r)^n = 319667.89.

  3. Q3 medium

    TVM discounting 54: present value of Rs 185,600 in 6 years at 17% is approximately

    1. A Rs 157,760
    2. B Rs 158,632
    3. C Rs 185,600
    4. D Rs 72,354
    💡 Explanation:

    PV = FV/(1+r)^n.

  4. Q4 Past Paper · PPSC/FPSC/NTS hard

    TVM problem 53: Rs 100,000 at 13% compounded annually for 6 years grows to approximately

    1. A Rs 208,195
    2. B Rs 113,000
    3. C Rs 178,000
    4. D Rs 300,404
    💡 Explanation:

    FV = PV × (1+r)^n = 208195.18.

  5. Q5 medium

    TVM discounting 52: present value of Rs 177,200 in 4 years at 15% is approximately

    1. A Rs 101,315
    2. B Rs 150,620
    3. C Rs 154,087
    4. D Rs 177,200
    💡 Explanation:

    PV = FV/(1+r)^n.

  6. Q6 medium

    TVM problem 51: Rs 95,500 at 11% compounded annually for 4 years grows to approximately

    1. A Rs 106,005
    2. B Rs 144,976
    3. C Rs 137,520
    4. D Rs 198,273
    💡 Explanation:

    FV = PV × (1+r)^n = 144975.72.

  7. Q7 Past Paper · PPSC/FPSC/NTS medium

    TVM discounting 50: present value of Rs 168,800 in 2 years at 13% is approximately

    1. A Rs 143,480
    2. B Rs 149,381
    3. C Rs 132,195
    4. D Rs 168,800
    💡 Explanation:

    PV = FV/(1+r)^n.

  8. Q8 hard

    TVM problem 49: Rs 91,000 at 9% compounded annually for 2 years grows to approximately

    1. A Rs 99,190
    2. B Rs 107,380
    3. C Rs 108,117
    4. D Rs 140,015
    💡 Explanation:

    FV = PV × (1+r)^n = 108117.1.

  9. Q9 medium

    TVM discounting 48: present value of Rs 160,400 in 7 years at 11% is approximately

    1. A Rs 136,340
    2. B Rs 77,258
    3. C Rs 144,505
    4. D Rs 160,400
    💡 Explanation:

    PV = FV/(1+r)^n.

  10. Q10 Past Paper · PPSC/FPSC/NTS medium

    TVM problem 47: Rs 86,500 at 18% compounded annually for 8 years grows to approximately

    1. A Rs 325,141
    2. B Rs 102,070
    3. C Rs 211,060
    4. D Rs 534,218
    💡 Explanation:

    FV = PV × (1+r)^n = 325141.32.

  11. Q11 medium

    TVM discounting 46: present value of Rs 152,000 in 5 years at 9% is approximately

    1. A Rs 129,200
    2. B Rs 139,450
    3. C Rs 152,000
    4. D Rs 98,790
    💡 Explanation:

    PV = FV/(1+r)^n.

  12. Q12 hard

    TVM problem 45: Rs 82,000 at 16% compounded annually for 6 years grows to approximately

    1. A Rs 199,785
    2. B Rs 95,120
    3. C Rs 160,720
    4. D Rs 311,843
    💡 Explanation:

    FV = PV × (1+r)^n = 199784.5.

  13. Q13 medium

    TVM problem 43: Rs 83,000 at 14% compounded annually for 4 years grows to approximately

    1. A Rs 94,620
    2. B Rs 140,184
    3. C Rs 129,480
    4. D Rs 207,688
    💡 Explanation:

    FV = PV × (1+r)^n = 140183.69.

  14. Q14 medium

    TVM discounting 42: present value of Rs 144,200 in 8 years at 19% is approximately

    1. A Rs 122,570
    2. B Rs 121,176
    3. C Rs 35,858
    4. D Rs 144,200
    💡 Explanation:

    PV = FV/(1+r)^n.

  15. Q15 Past Paper · PPSC/FPSC/NTS hard

    TVM problem 41: Rs 78,500 at 12% compounded annually for 2 years grows to approximately

    1. A Rs 98,470
    2. B Rs 87,920
    3. C Rs 97,340
    4. D Rs 138,344
    💡 Explanation:

    FV = PV × (1+r)^n = 98470.4.

  16. Q16 medium

    TVM discounting 40: present value of Rs 135,800 in 6 years at 17% is approximately

    1. A Rs 115,430
    2. B Rs 116,068
    3. C Rs 52,940
    4. D Rs 135,800
    💡 Explanation:

    PV = FV/(1+r)^n.

  17. Q17 Past Paper · PPSC/FPSC/NTS medium

    TVM problem 39: Rs 74,000 at 10% compounded annually for 8 years grows to approximately

    1. A Rs 81,400
    2. B Rs 133,200
    3. C Rs 158,626
    4. D Rs 211,131
    💡 Explanation:

    FV = PV × (1+r)^n = 158625.57.

  18. Q18 medium

    TVM discounting 38: present value of Rs 127,400 in 4 years at 15% is approximately

    1. A Rs 108,290
    2. B Rs 72,841
    3. C Rs 110,783
    4. D Rs 127,400
    💡 Explanation:

    PV = FV/(1+r)^n.

  19. Q19 hard

    TVM problem 37: Rs 69,500 at 8% compounded annually for 6 years grows to approximately

    1. A Rs 75,060
    2. B Rs 102,860
    3. C Rs 138,931
    4. D Rs 110,288
    💡 Explanation:

    FV = PV × (1+r)^n = 110287.77.

  20. Q20 Past Paper · PPSC/FPSC/NTS medium

    TVM discounting 36: present value of Rs 128,000 in 2 years at 13% is approximately

    1. A Rs 108,800
    2. B Rs 113,274
    3. C Rs 128,000
    4. D Rs 100,243
    💡 Explanation:

    PV = FV/(1+r)^n.

  21. Q21 medium

    TVM problem 35: Rs 65,000 at 17% compounded annually for 4 years grows to approximately

    1. A Rs 76,050
    2. B Rs 121,803
    3. C Rs 109,200
    4. D Rs 195,081
    💡 Explanation:

    FV = PV × (1+r)^n = 121802.67.

  22. Q22 medium

    TVM discounting 34: present value of Rs 119,600 in 7 years at 11% is approximately

    1. A Rs 101,660
    2. B Rs 107,748
    3. C Rs 57,606
    4. D Rs 119,600
    💡 Explanation:

    PV = FV/(1+r)^n.

  23. Q23 Past Paper · PPSC/FPSC/NTS hard

    TVM problem 33: Rs 66,000 at 15% compounded annually for 2 years grows to approximately

    1. A Rs 87,285
    2. B Rs 75,900
    3. C Rs 85,800
    4. D Rs 132,750
    💡 Explanation:

    FV = PV × (1+r)^n = 87285.

  24. Q24 medium

    TVM discounting 32: present value of Rs 111,200 in 5 years at 9% is approximately

    1. A Rs 94,520
    2. B Rs 72,272
    3. C Rs 102,018
    4. D Rs 111,200
    💡 Explanation:

    PV = FV/(1+r)^n.

  25. Q25 medium

    TVM problem 31: Rs 61,500 at 13% compounded annually for 8 years grows to approximately

    1. A Rs 69,495
    2. B Rs 163,494
    3. C Rs 125,460
    4. D Rs 235,905
    💡 Explanation:

    FV = PV × (1+r)^n = 163494.32.

  26. Q26 Past Paper · PPSC/FPSC/NTS medium

    TVM discounting 30: present value of Rs 102,800 in 3 years at 7% is approximately

    1. A Rs 83,915
    2. B Rs 87,380
    3. C Rs 96,075
    4. D Rs 102,800
    💡 Explanation:

    PV = FV/(1+r)^n.

  27. Q27 hard

    TVM problem 29: Rs 57,000 at 11% compounded annually for 6 years grows to approximately

    1. A Rs 63,270
    2. B Rs 94,620
    3. C Rs 145,808
    4. D Rs 106,614
    💡 Explanation:

    FV = PV × (1+r)^n = 106613.63.

  28. Q28 medium

    TVM discounting 28: present value of Rs 94,400 in 8 years at 19% is approximately

    1. A Rs 80,240
    2. B Rs 23,474
    3. C Rs 79,328
    4. D Rs 94,400
    💡 Explanation:

    PV = FV/(1+r)^n.

  29. Q29 Past Paper · PPSC/FPSC/NTS medium

    TVM problem 27: Rs 52,500 at 9% compounded annually for 4 years grows to approximately

    1. A Rs 57,225
    2. B Rs 71,400
    3. C Rs 74,108
    4. D Rs 95,972
    💡 Explanation:

    FV = PV × (1+r)^n = 74108.03.

  30. Q30 medium

    TVM discounting 26: present value of Rs 95,000 in 6 years at 17% is approximately

    1. A Rs 37,035
    2. B Rs 80,750
    3. C Rs 81,197
    4. D Rs 95,000
    💡 Explanation:

    PV = FV/(1+r)^n.

  31. Q31 Past Paper · PPSC/FPSC/NTS hard

    TVM problem 25: Rs 48,000 at 7% compounded annually for 2 years grows to approximately

    1. A Rs 51,360
    2. B Rs 54,955
    3. C Rs 54,720
    4. D Rs 67,322
    💡 Explanation:

    FV = PV × (1+r)^n = 54955.2.

  32. Q32 medium

    TVM discounting 24: present value of Rs 86,600 in 4 years at 15% is approximately

    1. A Rs 73,610
    2. B Rs 75,304
    3. C Rs 49,514
    4. D Rs 86,600
    💡 Explanation:

    PV = FV/(1+r)^n.

  33. Q33 medium

    TVM problem 23: Rs 43,500 at 16% compounded annually for 8 years grows to approximately

    1. A Rs 142,611
    2. B Rs 50,460
    3. C Rs 99,180
    4. D Rs 222,601
    💡 Explanation:

    FV = PV × (1+r)^n = 142611.05.

  34. Q34 Past Paper · PPSC/FPSC/NTS medium

    TVM discounting 22: present value of Rs 78,200 in 2 years at 13% is approximately

    1. A Rs 66,470
    2. B Rs 69,204
    3. C Rs 78,200
    4. D Rs 61,242
    💡 Explanation:

    PV = FV/(1+r)^n.

  35. Q35 hard

    TVM problem 21: Rs 44,500 at 14% compounded annually for 6 years grows to approximately

    1. A Rs 97,676
    2. B Rs 50,730
    3. C Rs 81,880
    4. D Rs 144,712
    💡 Explanation:

    FV = PV × (1+r)^n = 97676.28.

  36. Q36 medium

    TVM discounting 20: present value of Rs 69,800 in 7 years at 11% is approximately

    1. A Rs 59,330
    2. B Rs 62,883
    3. C Rs 69,800
    4. D Rs 33,620
    💡 Explanation:

    PV = FV/(1+r)^n.

  37. Q37 Past Paper · PPSC/FPSC/NTS medium

    TVM problem 19: Rs 40,000 at 12% compounded annually for 4 years grows to approximately

    1. A Rs 44,800
    2. B Rs 59,200
    3. C Rs 88,427
    4. D Rs 62,941
    💡 Explanation:

    FV = PV × (1+r)^n = 62940.77.

  38. Q38 medium

    TVM discounting 18: present value of Rs 70,400 in 5 years at 9% is approximately

    1. A Rs 59,840
    2. B Rs 64,587
    3. C Rs 45,755
    4. D Rs 70,400
    💡 Explanation:

    PV = FV/(1+r)^n.

  39. Q39 hard

    TVM problem 17: Rs 35,500 at 10% compounded annually for 2 years grows to approximately

    1. A Rs 39,050
    2. B Rs 42,600
    3. C Rs 42,955
    4. D Rs 57,173
    💡 Explanation:

    FV = PV × (1+r)^n = 42955.

  40. Q40 Past Paper · PPSC/FPSC/NTS medium

    TVM discounting 16: present value of Rs 62,000 in 3 years at 7% is approximately

    1. A Rs 52,700
    2. B Rs 57,944
    3. C Rs 62,000
    4. D Rs 50,610
    💡 Explanation:

    PV = FV/(1+r)^n.

  41. Q41 medium

    TVM problem 15: Rs 31,000 at 8% compounded annually for 8 years grows to approximately

    1. A Rs 33,480
    2. B Rs 50,840
    3. C Rs 72,281
    4. D Rs 57,379
    💡 Explanation:

    FV = PV × (1+r)^n = 57378.84.

  42. Q42 medium

    TVM discounting 14: present value of Rs 53,600 in 8 years at 19% is approximately

    1. A Rs 13,329
    2. B Rs 45,560
    3. C Rs 45,042
    4. D Rs 53,600
    💡 Explanation:

    PV = FV/(1+r)^n.

  43. Q43 Past Paper · PPSC/FPSC/NTS hard

    TVM problem 13: Rs 26,500 at 6% compounded annually for 6 years grows to approximately

    1. A Rs 28,090
    2. B Rs 36,040
    3. C Rs 37,591
    4. D Rs 44,771
    💡 Explanation:

    FV = PV × (1+r)^n = 37590.76.

  44. Q44 Past Paper · PPSC/FPSC/NTS easy

    An annuity due differs from ordinary annuity because payments occur

    1. A at the beginning of each period
    2. B only once at maturity
    3. C in the middle of each period
    4. D after two periods
    💡 Explanation:

    Annuity due: beginning-of-period payments.

  45. Q45 easy

    An ordinary annuity has cash flows occurring

    1. A at the beginning of each period
    2. B only in the first period
    3. C randomly within periods
    4. D at the end of each period
    💡 Explanation:

    Ordinary annuity: end-of-period payments.

  46. Q46 Past Paper · PPSC/FPSC/NTS medium

    Future value of Rs 10,000 at 10% compounded annually for 2 years is approximately

    1. A Rs 11,000
    2. B Rs 12,100
    3. C Rs 12,000
    4. D Rs 13,100
    💡 Explanation:

    FV = 10000 × 1.1² = 12100.

  47. Q47 Past Paper · PPSC/FPSC/NTS medium

    Present value of a single future amount increases when

    1. A discount rate decreases
    2. B discount rate increases
    3. C time period lengthens with same rate
    4. D future amount decreases
    💡 Explanation:

    PV = FV / (1+r)^n; lower r raises PV.

  48. Q48 Past Paper · PPSC/FPSC/NTS easy

    The time value of money principle states that

    1. A money has no temporal preference
    2. B a rupee today is worth more than a rupee received later
    3. C future cash flows need no discounting
    4. D inflation eliminates discounting need
    💡 Explanation:

    Compounding and discounting reflect opportunity cost.

  49. Q49 medium

    TVM discounting 10: present value of Rs 36,800 in 4 years at 15% is approximately

    1. A Rs 31,280
    2. B Rs 32,000
    3. C Rs 21,041
    4. D Rs 36,800
    💡 Explanation:

    PV = FV/(1+r)^n.

  50. Q50 hard

    TVM problem 9: Rs 23,000 at 13% compounded annually for 2 years grows to approximately

    1. A Rs 25,990
    2. B Rs 29,369
    3. C Rs 28,980
    4. D Rs 42,376
    💡 Explanation:

    FV = PV × (1+r)^n = 29368.7.

  51. Q51 Past Paper · PPSC/FPSC/NTS medium

    TVM discounting 44: present value of Rs 152,600 in 3 years at 7% is approximately

    1. A Rs 129,710
    2. B Rs 142,617
    3. C Rs 124,567
    4. D Rs 152,600
    💡 Explanation:

    PV = FV/(1+r)^n.

  52. Q52 Past Paper · PPSC/FPSC/NTS medium

    TVM discounting 8: present value of Rs 37,400 in 2 years at 13% is approximately

    1. A Rs 29,290
    2. B Rs 31,790
    3. C Rs 33,097
    4. D Rs 37,400
    💡 Explanation:

    PV = FV/(1+r)^n.

  53. Q53 medium

    TVM problem 7: Rs 18,500 at 11% compounded annually for 8 years grows to approximately

    1. A Rs 20,535
    2. B Rs 34,780
    3. C Rs 58,308
    4. D Rs 42,634
    💡 Explanation:

    FV = PV × (1+r)^n = 42633.95.

  54. Q54 medium

    TVM discounting 6: present value of Rs 29,000 in 7 years at 11% is approximately

    1. A Rs 13,968
    2. B Rs 24,650
    3. C Rs 26,126
    4. D Rs 29,000
    💡 Explanation:

    PV = FV/(1+r)^n.

  55. Q55 Past Paper · PPSC/FPSC/NTS hard

    TVM problem 5: Rs 14,000 at 9% compounded annually for 6 years grows to approximately

    1. A Rs 15,260
    2. B Rs 21,560
    3. C Rs 23,479
    4. D Rs 30,407
    💡 Explanation:

    FV = PV × (1+r)^n = 23479.4.

  56. Q56 Past Paper · PPSC/FPSC/NTS medium

    TVM problem 11: Rs 27,500 at 15% compounded annually for 4 years grows to approximately

    1. A Rs 31,625
    2. B Rs 44,000
    3. C Rs 73,151
    4. D Rs 48,098
    💡 Explanation:

    FV = PV × (1+r)^n = 48097.67.

  57. Q57 medium

    TVM discounting 12: present value of Rs 45,200 in 6 years at 17% is approximately

    1. A Rs 38,420
    2. B Rs 17,621
    3. C Rs 38,632
    4. D Rs 45,200
    💡 Explanation:

    PV = FV/(1+r)^n.

  58. Q58 medium

    Perpetuity present value formula is

    1. A cash flow times discount rate
    2. B cash flow divided by discount rate
    3. C cash flow divided by (1+r)^n
    4. D discount rate divided by cash flow
    💡 Explanation:

    PV perpetuity = C / r.

  59. Q59 Past Paper · PPSC/FPSC/NTS medium

    Effective annual rate exceeds nominal annual rate when

    1. A compounding is annual only
    2. B compounding occurs more than once per year
    3. C nominal rate is zero
    4. D no interest is earned
    💡 Explanation:

    EAR = (1 + i/m)^m - 1.

  60. Q60 easy

    Discounting converts

    1. A present values to book values
    2. B nominal GDP to real GDP
    3. C equity to debt
    4. D future cash flows to present value equivalents
    💡 Explanation:

    Discounting applies (1+r)^-n factor.

  61. Q61 Past Paper · PPSC/FPSC/NTS easy

    Compounding converts

    1. A present amount to future value equivalents
    2. B future values to sunk costs
    3. C debt to equity
    4. D inventory to sales
    💡 Explanation:

    Compounding applies (1+r)^n factor.

  62. Q62 easy

    The Rule of 72 approximates

    1. A NPV of a project
    2. B bond duration exactly
    3. C tax shield value
    4. D years to double investment at a given interest rate
    💡 Explanation:

    Years ≈ 72 / interest rate percent.

  63. Q63 Past Paper · PPSC/FPSC/NTS hard

    Continuous compounding uses the factor

    1. A (1+r)^t only
    2. B e^(rt)
    3. C ln(r+t)
    4. D r/t
    💡 Explanation:

    FV = PV × e^(rt).

  64. Q64 hard

    A growing perpetuity PV formula is

    1. A C1 × (r - g)
    2. B C1 / (r - g) where g < r
    3. C C1 / g
    4. D C / r²
    💡 Explanation:

    Gordon growth model form.

  65. Q65 Past Paper · PPSC/FPSC/NTS medium

    Nominal interest rate approximately equals

    1. A real rate minus inflation
    2. B inflation divided by real rate
    3. C real rate plus expected inflation
    4. D tax rate plus inflation
    💡 Explanation:

    Fisher equation approximation.

  66. Q66 easy

    Intra-year compounding with quarterly periods means m equals

    1. A 2
    2. B 12
    3. C 1
    4. D 4
    💡 Explanation:

    Quarterly: 4 compounding periods per year.

  67. Q67 Past Paper · PPSC/FPSC/NTS medium

    If discount rate rises, bond price will

    1. A rise
    2. B remain unchanged always
    3. C fall
    4. D double
    💡 Explanation:

    Price and yield move inversely.

  68. Q68 hard

    TVM problem 1: Rs 5,000 at 5% compounded annually for 2 years grows to approximately

    1. A Rs 5,250
    2. B Rs 5,500
    3. C Rs 6,381
    4. D Rs 5,513
    💡 Explanation:

    FV = PV × (1+r)^n = 5512.5.

  69. Q69 Past Paper · PPSC/FPSC/NTS medium

    TVM discounting 2: present value of Rs 12,200 in 3 years at 7% is approximately

    1. A Rs 9,959
    2. B Rs 10,370
    3. C Rs 11,402
    4. D Rs 12,200
    💡 Explanation:

    PV = FV/(1+r)^n.

  70. Q70 medium

    TVM problem 3: Rs 9,500 at 7% compounded annually for 4 years grows to approximately

    1. A Rs 10,165
    2. B Rs 12,160
    3. C Rs 12,453
    4. D Rs 15,255
    💡 Explanation:

    FV = PV × (1+r)^n = 12452.56.

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