Quiz Ch 05 – Time Value of Money Terminology
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
If you invest $100 in a savings account today, what term refers to the total value of this investment one year from now?
If you invest $100 in a savings account today, what term refers to the total value of this investment one year from now?
Eunchae invested $2,000 six years ago at 4.5 percent interest and spends all of her interest earnings. What type of interest is she earning on her investment?
What does the term “compound interest” encompass?
What is meant by the term “excess return”?
What characteristics are associated with perpetuities?
What is the term for the measure of an entity’s capacity to pay its current liabilities immediately
How is the stated interest rate expressed?
Find what the net operating income should increase by given the company’s sale increase.
Your numbers will vary.
Tells you company purchased a machine for a down payment plus a monthly amount. Aks how to compute the cash price.
Aks what you would multiple the cost of a truck (not due til next year) by…