Question

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4. compania a) allows for b) does not alla upandenlanesti laws for reinvent of acterest paymeak LA Mes not allow for the reinvestoint Of Interest payment Is the same as simple interest 40290 proides a value that is less than simple interest any both A and D S 5. The time y The time value of money concept can be defined as: the reainship between the supply and demand of money The relaheship between m y spent versus Money realved the relatonship between a dollar to be receved in He fufue andłodular techy the relatinship between inkarest rate shared and amant par e none of the above 6.) Lee pays 1 percent per month interest on his credit card accomt when his monthly rate is multiplied by 12, the resulting answer is referred to as the a) annal percentage vahe b) campandeded rate effective annual rahe d) perpetual rate 1. Simple rate

Answer 1

4) a) Allows for reinvestment of interest payment

Compound interest means interest on interest. Means interest earned on interest amount

5) C) relationship between a dollar to be received in future and a dollar today

Time value of money state that dollar received today has more value than dollar received after one year. This is because of interest earning ability of dollar

6) A) Annual percentage rate

APR is the quoted rate on loan.