You Are Learning a List of Items for a Test

question 47

Multiple Choice

You are learning a list of items for a test by relating the items to each other and to information that you already have stored in memory.Which type of rehearsal are you using?

• A)Condensed
• B)Permanent
• C)Maintenance
• D)Elaborative

Calculate the savings accumulation time required to reach a financial goal with periodic deposits and compound interest.

Determine the time required for a business investment to repay its initial cost including a desired return.

Calculate nominal and effective rates of interest for ordinary annuities.

Assess the effective rate of interest on consumer financing options, considering promotional offers and compound interest.

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Definitions:

Benefit

is an advantage or profit gained from something, or a payment or gift made by an employer, the state, or an insurance company.

Present Value

The existing worth of a forthcoming monetary sum or cash flows, assessed with an agreed-upon rate of return.

Annuity Table

A financial tool used to determine the present or future value of an annuity investment by applying various interest rates and time periods.

PVFA Factors

Present Value Factor for Annuities, used in calculating the present value of a series of equal payments at regular intervals.