A. FILL IN THE BLANK.
ordinary
1. An ________ is a single sum of money that grows with
interest over time to a larger sum.
2. When a credit card company quotes an annual rate of 10% compounded monthly,
the EAR will be ______ than the quoted rate.
3. If a person wants to know what an amount deposited today at 4% will be worth in
4 years, he is asking its ____ value.
4. An ____ annuity has payments that occur at the end of
the time periods
5. Debt is ____ when the principal is paid off during the life
of the loan.
6. When a person wants to know what he must deposit today so that in 5 years he
will have $5,000, he is asking its ____ value.
7. Preferred stock is valued as a ____
8. ____ are specially designated funds into which the
company deposits money so that a bond can be paid off at maturity.
9. A dollar received today is worth ____ than a dollar received one
year from today.
10. ____ is earning interest on previously earned interest.
Answers
Answer:
A. FILL IN THE BLANK.
ordinary
1. An ________ is a single sum of money that grows with
interest over time to a larger sum.
2. When a credit card company quotes an annual rate of 10% compounded monthly,
the EAR will be ______ than the quoted rate.
3. If a person wants to know what an amount deposited today at 4% will be worth in
4 years, he is asking its ____ value.
4. An ____ annuity has payments that occur at the end of
the time periods
5. Debt is ____ when the principal is paid off during the life
of the loan.
6. When a person wants to know what he must deposit today so that in 5 years he
will have $5,000, he is asking its ____ value.
7. Preferred stock is valued as a ____
8. ____ are specially designated funds into which the
company deposits money so that a bond can be paid off at maturity.
9. A dollar received today is worth ____ than a dollar received one
year from today.
10. ____ is earning interest on previously earned interest.
Answer:
A. FILL IN THE BLANK.
ordinary
1. An ________ is a single sum of money that grows with
interest over time to a larger sum.
2. When a credit card company quotes an annual rate of 10% compounded monthly,
the EAR will be ______ than the quoted rate.
3. If a person wants to know what an amount deposited today at 4% will be worth in
4 years, he is asking its ____ value.
4. An ____ annuity has payments that occur at the end of
the time periods
5. Debt is ____ when the principal is paid off during the life
of the loan.
6. When a person wants to know what he must deposit today so that in 5 years he
will have $5,000, he is asking its ____ value.
7. Preferred stock is valued as a ____
8. ____ are specially designated funds into which the
company deposits money so that a bond can be paid off at maturity.
9. A dollar received today is worth ____ than a dollar received one
year from today.
10. ____ is earning interest on previously earned interest.
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