Exam 4: Time Value of Money

Paper money is printed by the ________.

The process whereby the value of an investment increases exponentially over time is called:

The annual percentage yield indicates

Calculate the future value when PV = $1,000,the interest rate is 8%,and there are 9 years (periods).

When interest is added to your initial deposit and you begin to earn interest on interest,this is known as

Which of the following correctly defines future value?

What gives paper currency value?

Who controls the circulation of money in the United States?

You put your $100 in a savings account and earn 12% APR.At the end of one year,you earned $12.00 in interest.This is an example of simple interest.

Paper money is backed by the credit and faith of the U.S.government and ________.

The process of discounting involves knowing how much money you would have had to deposit today in order to have a specific amount in the future.

The government has an unlimited supply of money.

If you have $3,000 today with a 5% APY,how much will you have 2 years from now?

If you invest $100 and receive a 12% APR (annual percentage rate),what will your balance be at the end of the year?

You have a long-term goal of paying off your school loans in five years.You will graduate with a loan debt of $20,000 and an interest rate of 6%.How much will you need to pay each month to have the debt paid off in five years?

A stream of equal payments that occurs at the beginning of a period is called

What is earning interest on interest?

What is compounding?

What do you call a stream of equal payments received or paid at equal intervals in time?

If you put $1,000 into an account earning 5% interest annually,how much will you have in five years?