The amount added to the principal amount of money using simple interest rate compared to the compound interest is O a. Less O b. Equal O c. Not specified O d. More

The maturity value of a note receivable is equal to the sum of the face amount of the note O plus the interest O plus nothing else O none of these answers are correct Ominus the interest

The of the present values of all the payments required to pay off a loan is equal to the original principal of the loan. square root sum economic rate equivalent payment

Listen The future value of $100 deposited today (assuming positive interest rates and a time difference between the present and the future): 1) will always be less than $100. 2) will always be equal to $100. 3) will always be greater than $100. depending on the exact interest rate and on the precise amount of time difference between the present and the future, can be less than $100, greater than $100, or equal to $100. 5) None of the statements above are correct. 4)

Assess the following statements: 1. Simple interest calculations assume the interest earned is never reinvested. II. The real interest rate is the increment to purchasing power that the lender earns in order to induce him or her to forego current consumption. II. Earning a 5% interest rate with annual compounding is better than earning a 4.95% interest rate with semiannual compounding. IV. For any positive interest rate the present value of a given annuity will be less than the sum of the cash flows and the future value of the same annuity will be greater than the sum of the cash flows. All statements are correct. Two statements are incorrect. O Three statements are incorrect. Only one statement is incorrect.