Chapter 5

8 Questions  I  By Bbbanks
Please take the quiz to rate it.

Chapter 5
Words for Chapter 5

  
Changes are done, please start the quiz.


Questions and Answers

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
  • 1. 
    The interest rate per priod mulitplier by the number of periods in a year is called the
    • A. 

      Call rate

    • B. 

      Coupon

    • C. 

      Annual percentage rate

    • D. 

      Discount rate


  • 2. 
    The difference between an ordinary annuity and an annuity due is the
    • A. 

      Only on the initial investment

    • B. 

      Timing of the annuity payments

    • C. 

      Ordinary cash flow


  • 3. 
    Which one of  the following is an annuity, but not a perpetuity
    • A. 

      Unequal payments each month for 18 months

    • B. 

      Amount of tax due on the next dollar of taxable income

    • C. 

      Equal payments every six months for 48 months


  • 4. 
    Payments of $100 a month for 24 month are defined as an
    • A. 

      Ordinary cash flow

    • B. 

      Annuity

    • C. 

      Annuity due

    • D. 

      Issue date


  • 5. 
    A series of equal cash flows that occur at the beginning of each time period for a limited number of time periods is called an
    • A. 

      Annuity due

    • B. 

      Marginal

    • C. 

      Is a noncash expense

    • D. 

      Present value


  • 6. 
    Which one of the following statement concerning annuities is correct
    • A. 

      An annuity due has payment that occur at the beginning of each time period

    • B. 

      Equal payments every six months for 48 months

    • C. 

      Annual percentage rate


  • 7. 
    Which one of the following is a perpetuity
    • A. 

      $1,000 annual payments from a trust fund forever

    • B. 

      $50.00 a months for a year

    • C. 

      $100 annual payments until I die.


  • 8. 
    A series of unending cash flows of equal amount that occur at equal intervals of time is called an
    • A. 

      Annuity due

    • B. 

      Perpetuity

    • C. 

      Annuity


Back to top

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz
We have sent an email with your new password.