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FIN 100 Quiz 4
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FIN 100 Quiz 4

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•             Question 1

                 

                The rate of interest actually paid or earned, also called the annual percentage rate (APR), is the ________ interest rate.       

                                 

                                                 

•             Question 2

                 

                Which of the following terms best describes an annuity due?

                 

                                 

                                                 

•             Question 3

                 

                The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received.

                 

                                 

                                                 

•             Question 4

                 

                A loan that is repaid in equal payments over a specified time period is referred to as a (n):            

                                 

                                                 

•             Question 5

 

                 

                Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years?

                 

                                 

                                                 

•             Question 6

 

                 

                If $1,000 were invested now at a 12% interest rate compounded annually, what would be the value of the investment in two years?

                 

                                 

                                                 

•             Question 7

 

                 

                For positive interest rates, the future value interest factor is

                 

                                 

                                                 

•             Question 8

 

                 

                The present value of a $20,000 perpetuity at a 7 percent discount rate is

                                 

                                                 

•             Question 9

 

                 

                A series of equal payments or receipts that occur at the beginning of each of a number of time periods is referred to as:

                 

                                 

                                                 

•             Question 10

 

                 

                The basic future and present value equations contain four variables. Which one of the following isnot included?

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