The Amount Earned by an Investor Expressed as a Percentage

question 184

Multiple Choice

The amount earned by an investor expressed as a percentage of the amount invested is called

• A)discount rate.
• B)rate of return.
• C)present value.
• D)future value.
• E)expected past rate.

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Definitions:

Maturity Value

The total amount payable to an investor at the end of a fixed-term investment, including principal and any accrued interest.

Discounted Note

A debt instrument sold for less than its face value that will pay the face value at maturity.

Proceeds

Maturity value less bank discount.