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.........................is the processof accumulating interest in an investment over time to earn more interest.
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- Match each sentence to the correct concept. a) The amount an investment is worth after one or more time periods is referred to as _______________ b) The process of finding the present value of some future amount is called _________________.Identify the concept. a) The amount an investment is worth after one or more time periods is referred to as _______________ b) The process of finding the present value of some future amount is called _________________.c) Calculating the present value of a future cash flow to determine its value today is known as _________________.d) Interest earned on the principal and may be for a number of years may be called ______________e) ___________ is the process of accumulating interest in an investment over time to earn more interest.f) The interest earned on both the initial principal and the interest reinvested from prior periods is referred to as ______ _______.a) The amount an investment is worth after one or more time periods is referred to as _______________ b) The process of finding the present value of some future amount is called _________________. c) Calculating the present value of a future cash flow to determine its value today is known as _________________. d) Interest earned on the principal and may be for a number of years may be called ______________ e) ___________ is the process of accumulating interest in an investment over time to earn more interest. f) The interest earned on both the initial principal and the interest reinvested from prior periods is referred to as ______ _______.
- Match each sentence to the correct concept. a) the amount an investment is worth after one or more time periods is referred to as............................ b) the process of finding the present value of some future amount is called.............................. c) calculating the present value of a future cash flow to determine its value today is known as....................................... d) Interest earned on the principal and may be for a number of years may be called...................................... e .................................. is the process of acculating interest in an investment over time to earn more interest. f) the interest earned on both the initial principal and the interest reinvested from prior periods is reffered to as............... ..........................The payback method measures: The profitability of an investment. The net cash inflow from an investment. The economic life of an investment. How rapidly the investment is recovered. The investment’s true rate of return.A particular investment's rate of return is referred to as a "return on investment."
- Interest earned on the principal and may be for a number of years may be called ______________ ___________ is the process of accumulating interest in an investment over time to earn more interest. The interest earned on both the initial principal and the interest reinvested from prior periods is referred to as ______ _______.Utility refers to Group of answer choices the total of your spending for the year the satisfaction you receive from purchasing something. how much money you receive during the year the value of your investments at any given timeThe current income is ? The investor would experience a Gain, Loss, or Neither? The total return on this investment is $?
- Describe the affects of the present value of an investment.The future value of an investment increases as the number of periods increases True or FaseDoes the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof the return on investment? How about the investment’s internal rate of return (IRR)?