Chapter 7

Question 1

Which of the following functions will return the interest payment of a loan?

Answer 1

IPMT

Question 2

Which of the following functions will return the principal payment of a loan?

Answer 2

PPMT

Question 3

Which of the following functions will calculate the total interest paid between
select periods?

Answer 3

CUMIPMT

Question 4

Which of the following functions will calculate the total principal paid between select periods?

Answer 4

CUMPRINC

Question 5

Which function will calculate the current value on an investment that will earn 5% interest on yearly payments of $100 over 10 years?

Answer 5

PV

Question 6

In a typical loan amortization schedule, the dollar amount of interest paid each period .

Answer 6

decreases with each payment

Question 7

In a typical loan amortization schedule, the total dollar amount of money paid each period

Answer 7

remains constant with each payment

Question 8

An amortization table can be used to determine a schedule for paying off a student loan.
-true or false

Answer 8

true

Question 9

Spreading the cost of an assest over its useful time period is called _________.

Answer 9

depreciation

Question 10

We can use cash flow analysis analysis to ____

Answer 10

to ensure that an organization has the funds needed to perform its operations