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Quiz · 4 questions

Time Value of Money

Why ₩100 today ≠ ₩100 next year

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Quiz

01Why is ₩100 today worth more than ₩100 in one year?
02₩1,000 today at 5% annual compound interest. Approximate FV after 10 years?
03Compound interest vs. simple interest at 5% over 30 years on ₩1,000. Which gap is closest to right?
04Gordon Growth: P = C / (r − g). If r = 8%, g = 4%, C = ₩400, what's P?
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