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Finance Exam 2

Authored by Savannah Snider

Financial Education

University

Used 1+ times

Finance Exam 2
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20 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Interest earned on both the initial principal and the interest reinvested from prior periods.

Compound Interest

Simple Interest

Compounding

Discount

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The process of accumulating interest on an investment over time to earn more interest.

Compound Interest

Simple Interest

Compounding

Discount

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Interest earned only on the original principal amount invested.

Compound Interest

Simple Interest

Compounding

Discount

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The rate used to calculate the present value of future cash flows.

Discount Rate

Discounted Cash Flow

Present Value

Future Value

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Calculating the present value of a future cash flow to determine its value today.

Discount Rate

Discounted Cash Flow

Present Value

Future Value

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The amount an investment is worth after one or more periods. (Amount you will have)

Discount Rate

Discounted Cash Flow

Present Value

Future Value

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The current value of future cash flows discounted at the appropriate discount rate. (Amount you have rn)

Discount Rate

Discounted Cash Flow

Present Value

Future Value

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