QUESTION 1

Present Value

The value of a loan that remains after the interest has been paid.

The amount an investment is worth after it has accrued interest.

The exchange rate between money today and money tomorrow

The amount an investment is worth now.

The amount an investment is worth after some time has passed.

Simple Interest

		The amount of interest charged each period, e.g. monthly or quarterly.
		When the interest rate is defined as the periodic rate times the number of periods per year.
		When future interest is earned only on the original principal amount.
		When future interest is earned on principal and on interest previously received.
		A rate of interest which is also called the quoted or stated rate or the APR.

1 points

QUESTION 3

Discounting

		The process of dividing the cash flow by the interest rate.
		The process of earning interest on the prior periods interest.
		The rate of return that you earn on your investment.
		The process of finding the present value of a series of cash flows.
		The process of using compound interest to find the future value of a series of cash flows.