Question

Match the following terms with the appropriate definition.       -       A.      ...

  1. Match the following terms with the appropriate definition.

          -       A.       B.       C.       D.       E.   

    Future Value
          -       A.       B.       C.       D.       E.   

    Time value of money
          -       A.       B.       C.       D.       E.   

    Monetary Asset
          -       A.       B.       C.       D.       E.   

    Present value of a single amount
          -       A.       B.       C.       D.       E.   

    Simple interest
    A.

    A dollar now is worth more than a dollar later.
    B.

    Claim to a fixed amount of cash.
    C.

    Amount today equivalent to a specified future amount.
    D.

    Accumulation of an amount with interest.
    E.

    Based on initial investment only.

1 points   

QUESTION 3

  1. Match the following terms with the appropriate definition.

          -       A.       B.       C.       D.       E.   

    Interest
          -       A.       B.       C.       D.       E.   

    Monetary asset
          -       A.       B.       C.       D.       E.   

    Expected cash flow approach
          -       A.       B.       C.       D.       E.   

    Present value of a single amount.
          -       A.       B.       C.       D.       E.   

    Future value of a single amount
    A.

    Claim to a fixed amount of cash
    B.

    Rent paid or received for the use of money.
    C.

    The amount of money that a dollar will grow to.
    D.

    The rate to use is the risk-free rate of interest.
    E.

    Amount of money required today that is equivalent to a given future amount.
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Answer #1
1
Future Value Accumulation of an amount with interest.
Time value of money A dollar now is worth more than a dollar later.
Monetary Asset Claim to a fixed amount of cash.
Present value of a single amount Amount today equivalent to a specified future amount.
Simple interest Based on initial investment only.
3
Interest Rent paid or received for the use of money.
Monetary asset Claim to a fixed amount of cash
Expected cash flow approach The rate to use is the risk-free rate of interest.
Present value of a single amount. Amount of money required today that is equivalent to a given future amount.
Future value of a single amount The amount of money that a dollar will grow to.
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