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Test

Chapter 9

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Preguntas del test (10)

  1. 1tick marks designate ___ of periods
    1. Aend
    2. Bbeginning
    3. Cmiddle
    4. Dzero
  2. 2time 0 is the ''starting'' point ( beginning of period 1)
    time 1 is the ''end'' of period 1 (the beginning of period 2) ; and so on
    1. AVerdadero
    2. BFalso
  3. 3finding future values (moving to the __ along the time line) is called ___
    1. Aleft
    2. Bright
    3. Ctop
    4. Ddown
    5. Ebeginning
    6. Fmiddle
    7. Gcompounding
  4. 43 primary methods to find FVs
    1. Asolve the fv equation using a regular (non-financial) calculator
    2. Buse a financial calculator, that is one with financial functions
    3. Cuse a computer with a spreadsheet program such as excel, lotus 1-2-3, or quattro pro
  5. 5finding present values (moving to the ___ along the time line) is called ___
    1. Aleft, discounting
    2. Bright, discounting
    3. Cleft, expenses
    4. Dright, expenses
  6. 6Where did the discount rate come from?
    1. Adiscount rate is the ''opportunity cost rate''
    2. Bit does not depend on the source of the investment funds
    3. Crate could be earned on alternative investments of ''similar risk''
  7. 7a perpetuity is an annuity that lasts _____
    1. Aa short period of time
    2. Ba long period of time
    3. Cforever
    4. D1 day
  8. 8an annuity is a series of ''___ payments'' at fixed intervals for a specified number of period
    1. Adiscounted
    2. Bundiscounted
    3. Cequal
    4. Dsame
    5. Erisky
  9. 9symbol ''PMT'' represents annuity __
    1. Apayments
    2. Bcash
    3. Ctransaction
  10. 102 types of annuity:
    1) ordinary annuity - occurs at the ______ of each period
    2) annuity due - payments are made at the ___ of each period
    1. Abeginning, end
    2. Bend, beginning

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