Exam 6: Evaluating the Financial Impact of Loans and Investments

Adding interest earned each period to the principal for purposes of computing interest for the next period is known as ____ interest.

Bottom line depreciation basically allocates the value of an asset evenly throughout the life of the asset. _________________________

Range names must start with a letter, an underscore, or a(n) backslash. _________________________

When you borrow money from a bank to make a purchase, you must pay back the amount borrowed plus an additional amount known as principal.

When using the NPV function, the hurdle rate must match the ____________________ duration, so that a yearly cash flow would apply to a yearly discount rate, for example.

A house that costs $200,000 and requires a 10% down payment would have an original loan value (pv) of ____.

Most financial instruments, such as loans and CDs, use compound interest.

The depreciation method with the formula =DB(cost,salvage,life,period,[month]) is the ____ method.

____ is the equivalent of a yearly simple interest rate, taking into account compounding.

In Excel 2013, using the Define Name button and then typing a name in the Name field allows the user to specify a named range scope.

Sometimes a value is needed in multiple worksheets within a workbook. In this case, a(n) ____________________ range name is best.

The variable-declining balance method returns the depreciation of an asset for a specified period. _________________________

A standard method of detailing a loan transaction is to set up what is known as a(n) ____.

The function =-ROUND(Taxrate*C16,0) will round taxes to the nearest ____.

The ____ is the value of the loan or investment.

In the function =IPMT(B$3/B$5,A11,B$4*B$5,B$2,B$6,0), the only argument that will vary when copied down a column will be the ____.

The syntax of the FV function is =FV(rate,nper,pmt,[fv],[type]). _________________________

In the PPMT function, the per-argument periods begin at 1 and end at the last payment period, which equals ____.

The ____________________ argument is a list of positive and negative cash flows.

____ returns the cumulative interest paid on a loan between start_period and end_period.