Contemporary Mathematics

Mathematics

Quiz 11 :

Compound Interest and Present Value

Quiz 11 :

Compound Interest and Present Value

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Write the formula for calculating the number of compounding periods of a loan or an investment.
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The formula for calculating the number of compounding periods of a loan or an investment is
img Because to find the number of compounding periods of an investment, multiply the number of years by the number of periods per year

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Interest calculated solely on the principal is known as _______ interest, whereas interest calculated on the principal and previously earned interest is known as _______ interest.
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Interest Calculated solely on the principal is known as simple interest, where as interest calculated on the principal and previously earned interest is known as compound interest.
Because simple interest is the interest which can be calculated on the principal
The compound interest is the interest calculated on the principal and previously earned interest.

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The concept that money "now," or in the present, is more desirable than the same amount of money in the future because it can be invested and earn interest as time goes by is known as the _______ of money.
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The concept that money "now" or in the present, is more desirable than the same amount of money in the future because it can be invested and earn interest as time goes by is known as the time value of money.
Because time value of money is that idea that idea that money "now" or in the present, is more desirable that the same amount of money in the future because it can be invested and earn interest as time goes by.

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Compound interest is actually the _______ interest formula applied a number of times.
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Using Table 11-1, calculate the compound amount and compound interest for the following investments. img img
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A compound interest table is a useful set of factors that represent the future value of _______ at various interest rates for a number of compounding periods.
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Using Table 11-1, calculate the compound amount and compound interest for the following investments. img img
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The amount of compound interest is calculated by subtracting the _______ from the compound amount.
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Calculate the present value (principal) and the compound interest for the following investments. Use Table 11-2. Round answers to the nearest cent. img img
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Write the formula for calculating the interest rate per period of a loan or an investment.
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A shortcut method for calculating approximately how long it takes money to double in value at compound interest is called the Rule of _______.
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For the following investments, compute the amount of compound interest earned in 1 year and the annual percentage yield. Round APY to the nearest hundredth of a percent. img img
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Using Table 11-1, calculate the compound amount and compound interest for the following investments. img img
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The following investments require table factors for periods beyond the table. Create the new table factor and calculate the compound amount for each. img img
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Calculate the present value (principal) and the compound interest for the following investments. Use Table 11-2. Round answers to the nearest cent. img img
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For the following investments, compute the amount of compound interest earned in 1 year and the annual percentage yield. Round APY to the nearest hundredth of a percent. img img
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The total amount of principal and accumulated interest at the end of a loan or an investment is known as the _______ amount or _______ value.
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Using Table 11-1, calculate the compound amount and compound interest for the following investments. img img
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The following investments require table factors for periods beyond the table. Create the new table factor and calculate the compound amount for each. img img
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An amount of money that must be deposited today at compound interest to provide a specified lump sum of money in the future is known as the _______ amount or _______ value.
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