When Computing an Investment's Yield Using a Financial Calculator or Spreadsheet

question 64

Multiple Choice

When computing an investment's yield using a financial calculator or spreadsheet such as Excel, which of the following should be entered as a negative number?

• A) the number of time periods
• B) dividend or interest payments
• C) the price at which the investment is sold
• D) the initial cost of the investment

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Definitions:

Taxable Income

The portion of income, subject to taxes, calculated by deducting allowable deductions from gross income.

Charge and Discharge Statement

A financial report detailing the charges (debts or obligations) and discharges (payments or settlements) within a specific period.

Remainderman

An individual who inherits or is entitled to inherit property upon the expiration of a life estate.

Estate Accounting

The process of preparing and managing the financial records of an individual's estate following their death, including the calculation of assets, liabilities, and distribution to heirs.