Borrowers Must Pay Which One of the Following If They

question 51

Multiple Choice

Borrowers must pay which one of the following if they are to pay off their home mortgage?

• A) remaining principal balance plus any accrued interest
• B) present value of all future payments discounted at the current market rate
• C) all remaining payments in full
• D) remaining principal balance plus one year's interest
• E) present value of the remaining principal balance

Explain the role of instinct, drive-reduction, and hierarchy of needs in motivation theories.

Understand the benefits and effects of ROPES as a socialization strategy.

Identify terminologies related to the socialization process, including realistic job previews.

Recognize different types of developmental relationships.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to present value to account for risk and time value of money.

Working Capital

The gap between a firm's current assets and its current liabilities, showcasing its short-term financial stability.

Annual Cash Inflow

The total amount of money received by a company over a year, including revenues from sales, investments, and other sources.

Net Present Value

An economic indicator that finds the disparity between cash inflows' present value and the present value of cash outflows during a certain period.