1. The amount of interest that is deducted from the amount you wish to borrow in
ID: 2741740 • Letter: 1
Question
1. The amount of interest that is deducted from the amount you wish to borrow in order to get proceeds is
2. The approximate time that it takes a deposit to double at a certain interest rate is calculated by dividing the annual interest rate into the number
3. Banks calculate the monthly payment on a loan as
4. Your employer gives you a stock bonus of $1,000 in your company at the beginning of each year. You plan to retire in 20 years. The stock has a growth rate of 15 percent per annum. What will the value of your stock be in 20 years? This problem would be solved by using the formula for the
5. Which of the following is not a step in the capital budgeting decision?
6. Start-up costs for a capital budgeting project include all of the following except
7. Which of the following is not part of the three-step process of controlling?
8. Risk is a term indicating all of the following except
9. Which of the following would involve speculative risk?
10. Which of the following would not reduce pure risk for a business?
11. To have an insurable loss, all of the following criteria apply except
12. Which of the following holds true for whole life insurance?
13. Which of the following is the least liquid of all investments?
14. According to Moody’s Corporate Bond Ratings, bonds which are rated _______________ are judged to have speculative elements.
15. Who can participate in a tax-sheltered annuity?
16. 401k plans
17. Wills
18. Probate costs
a. accrued interest. b. bank discount. c. simple interest. d. stated interest.Explanation / Answer
1. The amount of interest that is deducted from the amount you wish to borrow in order to get proceeds is Bank Discount. The interest deducted from the amount of the loan is the discount. The amount the borrower receives is called the proceeds .
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