Finance > QUESTIONS & ANSWERS > Finance: Exam 1 Questions with Complete Solutions (All)
Finance: Exam 1 Questions with Complete Solutions
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Amortization Schedule Correct Answer A table showing precisely how a loan will be repaid. It gives the required payment on each payment date and a breakdown of the payment, showing how much is interes... t and how much is repayment of principal. Amortized Loan Correct Answer A loan that is repaid in equal payments over its life. Annual Compounding Correct Answer The arithmetic process of determining the final value of a cash flow or series of cash flows when interest is added once a year. Annual Percentage Rate (APR) Correct Answer The periodic rate times the number of periods per year. Annuity Correct Answer A series of equal payments at fixed intervals for a specified number of periods. Ordinary (Deferred) Annuity Annuity Due Correct Answer An annuity whose payments occur at the beginning of each period. Cash Flow (CFt) Correct Answer This term designates a cash flow that's not part of an annuity. Compound Interest Correct Answer Occurs when interest is earned on prior periods' interest. Compounding Correct Answer The arithmetic process of determining the final value of a cash flow or series of cash flows when compound interest is applied. [Show More]
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