100% tevredenheidsgarantie Direct beschikbaar na je betaling Lees online óf als PDF Geen vaste maandelijkse kosten
logo-home
D076 Unit 3 WRITTEN EXAM PASSED $10.65
In winkelwagen

Tentamen (uitwerkingen)

D076 Unit 3 WRITTEN EXAM PASSED

 0 keer verkocht
  • Vak
  • Instelling

What is the term for the percentage of the principal that a lender charges a borrower for the use of assets? - Interest rate How is the interest rate expressed? - as a percentage What is the main purpose of charging interest? - It allows borrowers to pay to use the assets of another entity to a...

[Meer zien]

Voorbeeld 2 van de 5  pagina's

  • 3 februari 2024
  • 5
  • 2023/2024
  • Tentamen (uitwerkingen)
  • Onbekend
avatar-seller
D076 Unit 3 WRITTEN EXAM PASSED
What is the term for the percentage of the principal that a lender charges a borrower for the use of
assets? - ✔✔✔Interest rate



How is the interest rate expressed? - ✔✔✔as a percentage



What is the main purpose of charging interest? - ✔✔✔It allows borrowers to pay to use the assets of
another entity to accomplish their own goals.



What is a component of the required rate of return? - ✔✔✔Opportunity cost



Why would a long-term investment require a higher rate of return? - ✔✔✔There is greater risk
involved and a higher opportunity cost.



You just inherited $25,000 from a long-lost relative. You decide to put the money in a savings account
for the time being. What would be considered an opportunity cost of putting the money in savings? - ✔
✔✔Buying a brand new car



Today, he pulled out $15,000 from his account to buy the car, but the price of the car is now $16,562.
Which component of the required rate of return did Ahmed forget to consider? - ✔✔✔Inflation



Why is built-in inflation linked to adaptive expectations? - ✔✔✔Workers want higher wages to keep
their standard of living as prices increase, which pushes the prices even higher.



What is the compensation for risk given to investors called? - ✔✔✔Risk Premium



Which type of interest rate is the rate at which invested money grows for a certain period time? - ✔✔
✔Nominal Rate

, Which component of an interest rate is an indicator of inflation and opportunity cost? - ✔✔✔Risk Free
Rate



What is the name for the interest rate expressed on an annual basis? - ✔✔✔Annual percentage rate



Why is the required rate of return also known as the hurdle rate? - ✔✔✔It is the minimum rate that a
firm must surpass to accept a project.



What is the inflation rate? - ✔✔✔The rate at which the average price level of a basket of goods and
services in an economy increases



What does the risk-free rate indicate? - ✔✔✔Inflation and opportunity cost



Suppose Sophia is considering a new stock investment for her retirement account. This stock has
significant risk, but is quite popular in the market. Inflation for the next few years is expected to be 2-3%
per year, and the current U.S. Treasury rates are about 2%. How should she use this information to
decide what type of return she can expect from the stock? - ✔✔✔Based on the inflation rate, she
should expect this stock to provide a return higher than this for the associated risk.



What is the name for a series of equal payments made at the end of consecutive periods over a fixed
length of time? - ✔✔✔Ordinary annuity



If you invest $10,000 today and then $5,000 each year for the next 5 years into an investment with an
interest rate of 4%, you can withdraw $39,248.14 in 5 years. What does $39,248.14 represent? - ✔✔✔
Future value



What is the name for the concept that a dollar today is worth more than a dollar in the future? - ✔✔✔
Time Value Money

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, Bancontact of creditcard en je bent klaar. Geen abonnement nodig.

Focus op de essentie

Focus op de essentie

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper jessyqueen. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor $10.65. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 65040 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Start met verkopen

Laatst bekeken door jou


$10.65
  • (0)
In winkelwagen
Toegevoegd