CM 2113 quiz 1 with answers

CM 2113 quiz 1 with answers
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Equivalence - CORRECT ANSWERS ✔✔Payments that |\ |\ |\ |\ |\ |\



differ in amount may be equal if made at different points
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in time is known as ____________.
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Interest - CORRECT ANSWERS ✔✔The Time Value of
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money is based on the premise that money can generate
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_______ over a period of time. |\ |\ |\ |\ |\




Comparing a future cost of one alternative with the |\ |\ |\ |\ |\ |\ |\ |\ |\



present worth cost of a second alternative is valid and
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meaningful. - CORRECT ANSWERS ✔✔False |\ |\ |\ |\




The reason why the value of money increases with time is
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because of the interest rate. - CORRECT ANSWERS
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✔✔True


A contractor is investing $5,000 per year in savings
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certificates at an annual interest rate of 10% and plans to |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



continue the investment program for 5 years, what will
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the value of the contractor investment be at the end of 5
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years? - CORRECT ANSWERS ✔✔$30,525 |\ |\ |\ |\