In a Contract's Terms of Payment, ____ Are Based on the Expected

question 55

Multiple Choice

In a contract's terms of payment, ____ are based on the expected overall duration of the project schedule.

• A) equal monthly or quarterly payments
• B) monthly payments based on actual costs incurred
• C) single payment at completion of project
• D) percentage of total contract amount

---

Definitions:

Present Value

The present value of a future amount of money or series of cash inflows, calculated using a predetermined interest rate.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets over a specific time frame, often noted on an annual basis.

Present Value

Present Value is the current value of a future sum of money or stream of cash flows given a specified rate of return, often used in assessing the worth of investments.

Interest Rate

The fee, shown as a percent of the main amount, that a lender imposes on a borrower for the use of assets.