On the Energy Diagram Below,which Point Represents an Intermediate

question 26

Multiple Choice

On the energy diagram below,which point represents an intermediate?

• A)Point 1
• B)Point 2
• C)Point 3
• D)Point 4

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Definitions:

Market Interest Rate

The rate of interest prevailing in the market that lenders demand and borrowers pay for funds.

Contractual Interest Rate

The agreed-upon rate of interest that is to be applied to the principal amount in a financial contract.

Discount

A reduction in the price of goods or services, typically offered to encourage purchases.

Face Value

the nominal value or original cost of a security as stated by the issuing authority, not necessarily its market value.