chapter 5 Exam Questions And answers 100% Verified.
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Course
AMORTIZATION
Institution
AMORTIZATION
Amortization is the process of paying off loans by regularly reducing the - correct answer principal
Which of the following is the simplest form of loan - correct answer pure discount loan
an interest rate expressed in ...
Amortization is the process of paying off loans by regularly reducing the - correct answer
principal
Which of the following is the simplest form of loan - correct answer pure discount
loan
an interest rate expressed in terms of the interest payment made each period is called a - correct
answer stated interest rate
quoted interest rate
when entering variables in an Excel function (or a financial calculator) the sign convention can be critical
to achieving a correct answer. The sign convention says that outflows are negative values; inflows are
positive values. For which variables is this a consideration? - correct answer present
value
payment
future value
the interest rate charged per period multiplied by the number of periods per year is equal to - correct
answer annual percentage rate on a loan
in almost all multiple cash flow calculations, it is implicitly assumed that the cash flows occur at the -
correct answer end of each period
in the excel setup pf a loan amortization problem, which of the following occurs? - correct answer
To find the principal payment each month, you subtract the dollar interest payment from the fixed
payment
The payment is found with =PMT(rate, nper, -pv, fv)
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