BADM*3160 Chapter Notes - Chapter 1: Annual Percentage Rate, Nominal Interest Rate, Real Interest Rate
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Week 1 - chapter 5 practice questions: the time value of money assignment. A stream of level cash payments that never ends. The rate at which the purchasing power of an investment increases is known as the real interest rate. Which of the following is the formula for calculating the future value (fv) if you have invested. A finite stream of cash flows growing at a constant rate is sometimes referred to as a(n) growing annuity. The annual percentage rate (apr) on a loan or investment is defined as the interest rate that is annualized using simple interest. An infinite stream of cash flows growing at a constant rate is called a(n) growing perpetuity. An equally spaced, level stream of cash that ends after a specified time period is called a(n) annuity. True or false: pv = l/(1+r)1 is the formula for calculating the present value of a future payment of l dollars at r% per period for t periods.
