Use the Present Value and Future Value Tables Included in Appendix

question 58

Multiple Choice

Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-If no interest payments are made on a note, then the difference between the present value of the cash flows associated with the note and the face value of the note represents

• A) Principal
• B) Amortization
• C) Interest
• D) Principal reduction

---

Definitions:

Minimum Food Budget

The lowest estimated amount of money required to cover the cost of food necessities for an individual or household.

Transfer Payments

Payments made by governments to individuals without any expectation of a direct economic return, such as welfare benefits, social security, and subsidies.

Low Incomes

Earnings that fall below a specified threshold that varies by location and adjusts over time, often linked to poverty levels.

Incidence of Poverty

The proportion or rate at which individuals or households fall below the poverty line, indicating the level of poverty in a given area.