Finance Exam 2
Authored by Savannah Snider
Financial Education
University
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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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