1-The amount of money paid for the use of borrowed capital or from the money that has been loan.              a.       Interest              b.       Interest rate              c.       Principal

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1-The amount of money paid for the use of borrowed capital or from the money that has been loan.

             a.       Interest

             b.       Interest rate

             c.       Principal

 

2-The costs that are repetitive and occur when an organization produces goods or services on a continuing basis.

             a.       Sunk cost

             b.       Recurring cost

             c.       Direct cost

 

3-The costs that have occurred in the past and have no importance in the estimates of future costs and revenues related to alternative course of action.

             a.       Sunk cost

             b.       Recurring cost

             c.       Direct cost

 

 

4- It is calculated using the principal only without considering the interest accrued in preceding period.

 

         a.       Simple interest

         b.      Compound interest

         c.       Annuity

 

        

5- It is an expression of the increase in the cost of goods and services from one year to the next.

             a.       Inflation

             b.      Annuity

             c.       Effective interest rate

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