A. Effective rate of interest
B. Nominal rate of interest
C. Compound interest
D. Simple interest
Correct Answer: Simple interest ✔
Last Updated: January 21, 2019
Related MCQs
- What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn ?
- What refers to the present worth of the probable future net earnings ?
- What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest ?
- What refers to the amount of money paid for the use of borrowed capital ?
- What refers to the cost of borrowing money or the amount earned by a unit principal per unit time ?
- What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal ?
- A uniform series of payment occurring at equal interval of time is called __________?
- What is the term for an annuity with a fixed time span ?
- What is the type of annuity where the payments are made at the end of each period starting from the first period ?
- What refers to the present worth of all the amount the bondholder will receive through his possession of the bond ?
- What is the type of annuity where the payments are made at the beginning of the each period starting from the first period ?
- What is the type of annuity where the first payment does not begin until some later date in the cash flow ?
- What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund ?
- What is the type of annuity that does not have a fixed time span but continues indefinitely or forever ?
- Which is NOT an essential element of an ordinary annuity ?
- What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaranteed by a mortgage on certain assets of a corporation ?