QUIZ#2 BUSINESS FINANCE

(a)   is the excess of resources (usual cash) received or paid over the number of resources loaned or borrowed.

(a)   is the interest paid on both the principal and the amount of interest accumulated in prior periods.

Future value interest factor (FVIF) is represented by the formula ____________

• $\left(1+i\right)^n$

• $\left(1+n\right)^i$

• $\left(n+i\right)^1$

• $\left(1x+i\right)^n$
  

An installment that requires a buyer to pay equal payments at a certain period is called (a)   .

(a)   means that individuals maximize returns for a given level of risk or minimize risk if the returns are the same.

The basic decision rule is to accept the project if the net present value is (a)   .

If the cash flow stream lasts forever or is indefinite, then it is called (a)   .

If payment is made and interest is computed at the end of each payment interval, then it is called (a)   .

One way to reduce risk to an acceptable level is through (a)   wherein you invest in different types of investments with different risks and returns.

If the cash flow happens at the beginning of each period, then it is called (a)   .