Exam 11: Loan Amortization, investment Analysis, and Asset Depreciation

A security is a legal document that can be bought and sold and holds some financial value.

A loan schedule that calculates the interest and principal payments is known as a(n)________ table.

The ________ function can help businesses determine the future return on an investment.

The PMT function equals the sum of the IPMT and PPMT results.

When using the PMT function,you should type a negative sign in front of the present value of the loan so that the payment will result in a positive value.

The CUMIPMT can be used to help calculate interest for a federal tax return.

Interest and principal make up EVERY payment in an amortization table.

The ________ method of depreciation spreads cost of an asset over its life.

________ are the costs associated with the loan and are never deducted from the beginning balance.

To display a positive result for the CUMIPMT function you would need to nest the ________ function.

Identify the correct formula to calculate the payment for a loan,where rate =6%,loan amount = $2,000,and payments will be made monthly for six years.

The ________ function determines the value of an investment or business by analyzing an irregular time series of incoming and outgoing cash flows.

The ________ function can be used to identify the interest portion for a mortgage payment.

Identify the correct formula to calculate the cumulative principal paid on a mortgage loan for the second year of the loan (periods 1-12,where rate =5%,nper =120,present value = $147,000.

You would need to enter a value for the fv argument of the PMT function when you have a(n)________ payment at the end of the loan.

A(n)________ is a an investment with recurring payments.

If you don't know the interest rate for a loan but you know the present value,payment,and number of payment periods,you can use the ________ function to determine the interest rate.

Often used to determine a company's value,________ is the movement of cash in and out of a business.

A(n)________ occurs when there is a concern that a chosen act or activity will not generate sufficient revenues to cover operating costs and repay debt obligations.