Exhibit 1A-4 Straight Line

question 210

Multiple Choice

Exhibit 1A-4 Straight line
-In Exhibit 1A-4, the slope of the straight line A-D is:

• A) 0.
• B) 1.
• C) 1/2.
• D) −1.

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Definitions:

Compounding

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Future Values

The worth of an asset or money on a predetermined future date that has the same value as a certain amount presently.

Present Values

The value today of a future sum of money or cash flows, when calculated at an agreed-upon return rate.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.