Podcast
Questions and Answers
What is the formula for simple interest?
What is the formula for simple interest?
- A = P(1 + i)
- A = P(1 - in)
- A = P(1 + in) (correct)
- A = P(1 + in)^2
What is the formula for compound depreciation?
What is the formula for compound depreciation?
- A = P(1 - in)
- A = P(1 + i)^n
- A = P(1 + in)
- A = P(1 - i)^n (correct)
What is the formula for effective interest rate?
What is the formula for effective interest rate?
- 1 + i_effective = (1 + i_nominal/m)^m (correct)
- 1 + i_effective = (1 + i_nominal/m)^(m-1)
- 1 + i_effective = m(1 + i_nominal/m)
- 1 + i_effective = (1 - i_nominal/m)^m
What is the formula for nominal interest rate?
What is the formula for nominal interest rate?
Which of the following is not a type of interest or depreciation?
Which of the following is not a type of interest or depreciation?
What is the value of A after 3 years if the principal amount is $100, the interest rate is 10% per year, and the interest is compounded annually?
What is the value of A after 3 years if the principal amount is $100, the interest rate is 10% per year, and the interest is compounded annually?
If a machine depreciates at a rate of 15% per year, what is its value after 2 years if the initial value is $500?
If a machine depreciates at a rate of 15% per year, what is its value after 2 years if the initial value is $500?
If the effective interest rate is 12%, and the nominal interest rate is 11% compounded quarterly, what is the value of m?
If the effective interest rate is 12%, and the nominal interest rate is 11% compounded quarterly, what is the value of m?
If the nominal interest rate is 12% compounded monthly, what is the effective interest rate?
If the nominal interest rate is 12% compounded monthly, what is the effective interest rate?
A company purchases a machine for $10,000, which depreciates at a rate of 10% per year. What is the total value of the machine after 5 years if the depreciation is compounded annually?
A company purchases a machine for $10,000, which depreciates at a rate of 10% per year. What is the total value of the machine after 5 years if the depreciation is compounded annually?
Flashcards are hidden until you start studying
