QUIZ#2 BUSINESS FINANCE

________is the excess of resources (usual cash) received or paid over the number of resources loaned or borrowed.

________ is the interest paid on both the principal and the amount of interest accumulated in prior periods.

Future value interest factor (FVIF) is represented by the formula ____________

• $\left(1+i\right)^n$

• $\left(1+n\right)^i$

• $\left(n+i\right)^1$

• $\left(1x+i\right)^n$
  

An installment that requires a buyer to pay equal payments at a certain period is called ___________.

__________means that individuals maximize returns for a given level of risk or minimize risk if the returns are the same.

The basic decision rule is to accept the project if the net present value is _________.

If the cash flow stream lasts forever or is indefinite, then it is called ___________.

If payment is made and interest is computed at the end of each payment interval, then it is called _____________.

One way to reduce risk to an acceptable level is through ___________ wherein you invest in different types of investments with different risks and returns.

If the cash flow happens at the beginning of each period, then it is called ___________.