The Present Value of a Fixed-Payment Loan Is Calculated as the ________

question 100

Multiple Choice

The present value of a fixed-payment loan is calculated as the ________ of the present value of all cash flow payments.

• A)sum
• B)difference
• C)multiple
• D)log

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Definitions:

Equipment

Tools, machinery, or other durable items necessary for the completion of a task or the operation of a business.

Resale Value

The estimated market value of an asset if sold again in the future.

Office Furniture

Desks, chairs, tables, cabinets, and other furnishings used in an office setting to facilitate work and storage.

Double-Declining-Balance

An accelerated method of depreciation which doubles the normal depreciation rate, reducing the asset's book value more quickly.