Financial Management_Pop Quiz 1

QuizÂ by Sherwin Salas

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- Q1
What is the product of principal amount, multiplied by the rate per annum and time in years?

Time elapsed

Interest

Interest Rate

Future Value

30s - Q2
What is the sum of the principal amount and interest?

Interest income

Interest expense

Face value

Future value

30s - Q3
According to the Banker's Rule, interest is computed using how many days in a year?

360

365.25

365

366

30s - Q4
What is the amount derived using, PV (1 + j/m)

^{mt}?Future value (simple interest)

Present value (simple interest)

Present value (compound interest)

Future value (compound interest)

30s