AM
WGU D076 EQUATIONS EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED
Practice questions for this set
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Present Value×(1+i)
(i is the discount rate, or the interest rate you are earning)
Future Value=Present Value×(1+i)n
(n is the number of compounding periods)
Select the correct term
1Future Value equation 2Growth Rate of Purchasing Power equation
3Present Value equation
4DFN equation
Don't know?
Simple Interest equation Annual Interest=Principal×Interest Rate
Total Interest=Annual Interest×t
Simple Interest for t years equation
(Annual Interest=Principal×Interest Rate)
Compound Interest equation Total Interest=Principal×(1+Interest Rate)^Number of Periods−Principal
Interest Rate or Required Rate of Rate=Risk-Free Rate+Risk Premium
Return equation
Growth Rate of Purchasing Power Growth Rate in Purchasing Power=(1 + Nominal Rate / 1 + Inflation) − 1
equation
Nominal Rate−Inflation
Real Rate equation (The real rate is the same as the growth rate in purchasing power, even
though the formula seems different.)
Present Value×(1+i)
(i is the discount rate, or the interest rate you are earning)
Future Value equation
Future Value=Present Value×(1+i)n
(n is the number of compounding periods)
Future Value/ (1+i)^n
Present Value equation
(i is the discount rate,n is the number of compounding periods)
Present Value of a Perpetuity equation Present Value=PMT/i
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