Search
Create
Log in
Sign up
Log in
Sign up
BUS 125 Business Math Chapter 12 Quiz
STUDY
Flashcards
Learn
Write
Spell
Test
PLAY
Match
Gravity
Terms in this set (10)
Compounding
A. Calculates interest periodically
B. Looks into the present when the future is known
Is done only on an annual basis
C. Results in less interest than simple interest
D. None of these
A. Calculates interest periodically
In tables for calculating compound interest, the number of periods is equal to
Number of years × number of times compounded per year
The rate used in the table for calculating compound interest is found by
Annual rate divided by number of times compounded per year
Using the table in handbook, the value of $60 deposited in a bank for six years at a rate of 10% compounded annually is
$106.30
(60X1.7716)
The effective rate (APY) is
The true annual rate
Present value does not
Know the present dollar amount
A table factor of .7312 from a present value table of $1 means that a certain rate of interest for a certain period of time will equal
$1
Using the table in the handbook, the present value of $12,000 for six years compounded at 6% semiannually is
$8,416.80
$20,000 for 14 years compounded at 8% semiannually results in how many periods?
28 (14x 2)
$100,000 for 20 years compounded at 4% annually results in a rate per period of
4
YOU MIGHT ALSO LIKE...
Investments
TextbookMediaPremium
$11.99
STUDY GUIDE
Business Mathematics Chapter 12
39 Terms
Moriiami
Business Math: Ch. 12 Quiz
10 Terms
MagsHoneycutt
ACCT Chapter 6
43 Terms
clay0501
OTHER SETS BY THIS CREATOR
Transfer and Discharge of Commercial Paper--Chapter 23 (BUS 242)
14 Terms
Andrea_Barrett
PLUS
Chapter 22--Commercial Paper (BUS 242)
28 Terms
Andrea_Barrett
PLUS
Chapter 21--Bankruptcy (BUS 242)
21 Terms
Andrea_Barrett
PLUS
BUS 242 TEST (Bus 242 Chapter 29 Computer privacy and speech, BUS 242 Chapter 31--The employer-employee relationship, BUS 242 Chapter 32-- Employment Law, Bus 242--Chapter 37 Health Care Law)
57 Terms
Andrea_Barrett
PLUS
THIS SET IS OFTEN IN FOLDERS WITH...
Mid-Term 3
70 Terms
IsabelleCalhoun
Chapter 12 Quiz 2
20 Terms
Emily_Yake2
Chapter 12 Quiz 6
20 Terms
Emily_Yake2
BUS 125 Final summer class (13-15)
29 Terms
Andrea_Barrett
PLUS
;