1. Match the following terms with the appropriate definition.

   - A. B. C. D. E.	Effective yield or interest rate
   - A. B. C. D. E.	Monetary liability
   - A. B. C. D. E.	Compound interest
   - A. B. C. D. E.	Present Value
   - A. B. C. D. E.	Future value of a single amount

   A.	The rate at which money will actually grow.
   B.	Current worth of future cash flows.
   C.	Interest accumulates on interest.
   D.	The money to which an amount invested will grow over time.
   E.	Fixed obligation to pay an amount in cash.

1 points

QUESTION 3

1. Match the following terms with the appropriate definition.

   - A. B. C. D. E.	Interest
   - A. B. C. D. E.	Monetary asset
   - A. B. C. D. E.	Expected cash flow approach
   - A. B. C. D. E.	Present value of a single amount.
   - A. B. C. D. E.	Future value of a single amount

   A.	Claim to a fixed amount of cash
   B.	Rent paid or received for the use of money.
   C.	The rate to use is the risk-free rate of interest.
   D.	The amount of money that a dollar will grow to.
   E.	Amount of money required today that is equivalent to a given future amount.