Econ

Question 1

Amount of money earned by a given capital

Answer 1

interest

Question 2

interest directly proportional to the length of time and the amount of principal borrowed

Answer 2

simple interest

Question 3

consists of a series of equal payments made at equal intervals of time

Answer 3

annuity

Question 4

equal payments are made at the end of each payment period starting from the first period

Answer 4

ordinary annuity

Question 5

payments of the first amount is deferred a certain number of periods after the first

Answer 5

deferred annuity

Question 6

payments are made at the start of each period, beginning from the first period.

Answer 6

annuity due

Question 7

periodic payments continue indefinitely.

Answer 7

perpetuity

Question 8

increase in amount of money needed to purchase same amount of goods or service. results in a decrease in purchasing power

Answer 8

inflation

Question 9

decrease in the value of an asset due to usage or passage of time

Answer 9

depreciation