APSC221 Chapter 4 Question and answers rated A+ 2024/2025
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Course
APSC 221
Institution
APSC 221
APSC221 Chapter 4 Question and answers rated A+ 2024/2025 APSC221 Chapter 4
Discrete Models - correct answer most common type of model which assumed that all cash flows and all compounding of cash flows occur at the ends of conventionally defined periods, such as months or years.
Continuou...
APSC221 Chapter 4
Discrete Models - correct answer ✔most common type of model which
assumed that all cash flows and all compounding of cash flows occur at the
ends of conventionally defined periods, such as months or years.
Continuous Models - correct answer ✔model that assume cash flows and
their compounding occur continuously over time
*whether discrete or continuous the model is usually an approximation
Compound Interest Factors - correct answer ✔formulas that define
mathematical equivalence for specific common cash flow patterns, permit
cash flow analysis more conveniently
Annuity - correct answer ✔Set of equal disbursements or receipts over a
sequence of periods; 4 factors which involve a series of uniform receipts or
disbursements that start at the end of the first period and continue over N
periods
Sinking Fund Factor - correct answer ✔denoted by (A/F,i,N) gives the size,
A, of a repeated receipt or disbursement that is equivalent to a future amount,
F, if the interest rate is I, and the number period is N, comes from term sinking
fund.
Uniform Series Compound Amount Factor - correct answer ✔denoted by
(F/A, i,N) gives the future value, F, that is equivalent to a series of equal-sized
receipts or disbursements, A, when the interest rate is I and the number of
periods is N. Inverse of sinking fund factor:
Capital Recovery Factor - correct answer ✔denoted by (A/P,i,N) gives the
value, A, of the equal periodic payments the receipts that are equivalent to a
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