Everything MATH 202 Questions With Complete Solutions

interest correct answer: the fee paid for the use the simple interest formula correct answer: I=Prt principal correct answer: the sum of money future value correct answer: amount A present value correct answer: principal P compound interest correct answer: interest paid on the principal plus reinvested interest. average daily balance method correct answer: a common method for calculating the intrest owed on a credit card. growth time correct answer: the time for an investment it take for a given principal to grow to a particular amount. equation solver correct answer: a graphing calculator or a computer annual percentage yield correct answer: the simple interest rate that would earn the same amount as a given annual rate for which interest is compounded. Also called effective rate or true interest rate. zero coupon bond correct answer: a bond that is sold now at a discount and will its face value at some time in the future when it matures. annuity correct answer: any sequence of equal periodic payments . ordinary annuity correct answer: when payments are made at the end of each time interval. future value correct answer: the sum of all payment plus all interest earned and is given by FV=PMT [{(1+i)^(n)-1}/i balance sheet correct answer: a table that shows the interes