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ACC 303 WEEK 9 QUIZ 6
ACC 303 Week 9 Quiz 6 – STR NEW
ACC 303 Week 9 Quiz 6
All Questions Included.
1. The time value of money refers to the fact that a dollar received today is worth less than a dollar promised at some time in the future.
2. Interest is the excess cash received or repaid over and above the amount lent or borrowed.
3. Simple interest is computed on principal and on any interest earned that has not been withdrawn.
4. Compound interest, rather than simple interest, must be used to properly evaluate long- term investment proposals.
5. Compound interest uses the accumulated balance at each year end to compute interest in the succeeding year.
6. The future value of an ordinary annuity table is used when payments are invested at the beginning of each period.
7. The present value of an annuity due table is used when payments are made at the end of each period.
8. If the compounding period is less than one year, the annual interest rate must be converted to the compounding period interest rate by dividing the annual rate by the number of compounding periods per year.
9. Present value is the value now of a future sum or sums discounted assuming compound interest.