anges saved in Drive B I A -GD 26. The time value of money plays an important role in which of the following a. understanding the effective rate on a business loan b. understanding the composition of a mortgage payment c. determining the true rate of return on an investment d. all of the above 27. Process of calculating future value of money from present value is a. compounding b. discounting c. money value d. stock value 28. Future value of interest if it is calculated once a year is classified as a. One time compounding b. annual compourding d. monthly compounding 29. Earning interest on interest is called a Extra Interest b. Simple Interest c. Inflation Interest d. Compound Interest 30. Lottery payoffs and payment for reatal apartments are examples of a lump sum amount b. deferred annuity c annuity due d. payment fixed series 31. Interest paid (eamed) on only the original principal botrowed (lent) is often referred to as a present value b. simple interest c. future value d compound interest Page 6 of 9