Exam 11: Loan Amortization, investment Analysis, and Asset Depreciation

The statement of cash flows can be used by banks to determine whether a company is eligible for a business loan.

Banks measure ________,or potential losses,when assessing a corporate loan.

A(n)________ is the ratio of the amount of money gained or lost from an investment relative to the initial amount invested.

The ________ argument in the PMT function represents the balance you want to attain after the last payment is made.

The fv and type arguments for the PMT are considered optional arguments.

The ________ function calculates the number of payment periods for an investment or loan if you know the loan amount,interest rate,and payment amount.

The ________ method of depreciation calculates depreciation evenly over the life of the asset.

The NPER function can be useful if you do not have all the information you need to calculate loan payments with the PMT function or you would like to verify the actual interest rate of the loan.

The PMT function and the IPMT functions use the same arguments EXCEPT ________.

An amortization table shows the interest rate for each payment.

________ is when you use several different values in one or more formulas to explore all the various results.

All of the following functions can be used to analyze an annuity investment EXCEPT ________.

Incoming cash flows are "negative," whereas outgoing flows are "positive."

The ________ function is used to determine the value of an investment by analyzing a series of future incoming and outgoing cash flows expected to occur over the life of the investment.

The ________ method of depreciation assumes that the value of an asset depreciates more in the first year than in the second year.

If you don't know the number of periods for a loan but you know the present value,payment,and number of interest rate,you can use the ________ function to determine the number of periods.

The FV function requires ________ arguments.

The ________ function can be used to identify the principal portion for a mortgage payment.

The ________ function figures the return for a series of cash flows that are irregular.