The Term in Is Computed as

question 38

Multiple Choice

The term in is computed as

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Definitions:

Interest Rate

Lenders impose a charge, as a percentage of the principal, on borrowers for the use of their assets.

Present Value

The value today of a future money sum or sequence of cash flows, based on a specific interest rate.

Interest Rate

The cost of borrowing money or the return on savings, usually expressed as a percentage.

Interest Rate

The percent of principal charged by the lender for the use of its money or the rate earned on deposited funds.