What type of annuity where the periodic payments (withdrawals) continue indefinitely? a. Annuity Due b. Ordinary Annuity c. Deferred Annuity d. Perpetuity It refers to the actual or exact rate of interest earned on the principal during a one-year period. a. Effeective Rate of Interest b. Simple Interest c. Nominal Rate of Interest d. Compound Interest Type of annuity where the payments are made at the end of each period. a. Annuity Due b. Ordinary Annuity c. Deferred Annuity d. Perpetuity
What type of annuity where the periodic payments (withdrawals) continue indefinitely?
a. Annuity Due
b. Ordinary Annuity
c. Deferred Annuity
d. Perpetuity
It refers to the actual or exact rate of interest earned on the principal during a one-year period.
a. Effeective Rate of Interest
b. Simple Interest
c. Nominal Rate of Interest
d. Compound Interest
Type of annuity where the payments are made at the end of each period.
a. Annuity Due
b. Ordinary Annuity
c. Deferred Annuity
d. Perpetuity
A series of flows increasing or decreasing by a fixed amount at regular intervals
a. Geometric Gradient
b. Incremental Cashflow
c. Annuity Due
d. Uniform Gradient
The cost of borrowing money. It refers to the amount earned by a unit principal per unit time.
a. Compound Interest
b. Interest rate
c. Simple Interest
d. Effective rate
The application of engineering or mathematical analysis and synthesis to economic decisions.
a. Cost Concept and Design
b. Engineering Economy
c. Present Economy
d. Money Time Relationship
Defined as the accrual or the exact rate of interest earned on the principal during 1year period.
a. Nominal Rate
b. Effective rate
c. Interest rate
d. Compound rate
The number of years required for
a. Annual Worth
b. Payback Period
c.
d. External rate of return
The amount of money used on which interest is charged.
a. Interest
b. Interest rate
c. Principal
d. Future amount
An interest based on the banker’s year.
a. Compound Interest
b. Ordinary interest
c. Exact simple interest
d. Simple interest
This analysis uses iteration to evaluate differences between alternatives. First, arranging the feasible alternatives based on increasing capital investment and establishing a base.
a. Incremental analysis
b. Repeatability assumption
c. Equivalent worth method
d. Co-terminates assumption
Step by step
Solved in 2 steps
