Planning for Too Long or Too Short a Time Period

question 8

Multiple Choice

Planning for too long or too short a time period ________.

• A) is the concept of commitment
• B) is effective planning
• C) depends on the organization
• D) is inefficient and ineffective

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Definitions:

Simple Interest

A method of calculating interest whereby it is applied only to the principal amount, not including any previously earned interest.

Deposit Maturity

The end of a deposit term at which point the deposited funds plus any accrued interest are available to the account holder.

Deposit Date

The specific day on which funds are placed into an account.

Maturity Value

The total amount payable to an investor at the end of a fixed term investment, including the principal and the interest.