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1. In a loan amortization schedule, interest payments for each period would most probably a. Increase over time c. Remain the same b. Decrease overtime d. There are no interest payments in the schedule 2. The formula (1+ i)n is also called a. present value factor for lump-sum payment b. future value factor for lump-sum payment c. present value factor for ordinary annuity d. future value factor for ordinary annuity 3. An increase in the present value may be caused by a. increase in the discount rate b. decrease in the discount rate c. discount rate does not affect the present value d. none of the above 4. Interest payments that are based on the original principal and previous interest recognized is based on a. present value c. simple interest rate b. future value d. compound interest rate 5. The time value of money suggest that a peso received today is a peso received in the worth future. a. less than c. the same as b. more than d. none of the above

1. In a loan amortization schedule, interest payments for each period would most probably a. Increase over time c. Remain the same b. Decrease overtime d. There are no interest payments in the schedule 2. The formula (1+ i)n is also called a. present value factor for lump-sum payment b. future value factor for lump-sum payment c. present value factor for ordinary annuity d. future value factor for ordinary annuity 3. An increase in the present value may be caused by a. increase in the discount rate b. decrease in the discount rate c. discount rate does not affect the present value d. none of the above 4. Interest payments that are based on the original principal and previous interest recognized is based on a. present value c. simple interest rate b. future value d. compound interest rate 5. The time value of money suggest that a peso received today is a peso received in the worth future. a. less than c. the same as b. more than d. none of the above

Essentials Of Investments
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
Section: Chapter Questions
Problem 1PS
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1. In a loan amortization schedule, interest payments for each period would most probably a. Increase overtime c. Remain the same b. Decrease overtime d. There are no interest payments in the schedule 2. The formula (1 + i)n is also called a. present value factor for lump-sum payment b. future value factor for lump-sum payment c. present value factor for ordinary annuity d. future value factor for ordinary annuity 3. An increase in the present value may be caused by a. increase in the discount rate b. decrease in the discount rate c. discount rate does not affect the present value d. none of the above 4. Interest payments that are based on the original principal and previous interest recognized is based on a. present value c. simple interest rate b. future value d. compound interest rate 5. The time value of money suggest that a peso received today is worth a peso received in the future. a. less than c. the same as b. more than d. none of the above
Transcribed Image Text:1. In a loan amortization schedule, interest payments for each period would most probably a. Increase overtime c. Remain the same b. Decrease overtime d. There are no interest payments in the schedule 2. The formula (1 + i)n is also called a. present value factor for lump-sum payment b. future value factor for lump-sum payment c. present value factor for ordinary annuity d. future value factor for ordinary annuity 3. An increase in the present value may be caused by a. increase in the discount rate b. decrease in the discount rate c. discount rate does not affect the present value d. none of the above 4. Interest payments that are based on the original principal and previous interest recognized is based on a. present value c. simple interest rate b. future value d. compound interest rate 5. The time value of money suggest that a peso received today is worth a peso received in the future. a. less than c. the same as b. more than d. none of the above
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