Answer Key to Midterm 2

Answer Key to Midterm 2 - Midterm 2 Managerial Finance FRL...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Midterm 2 Managerial Finance, FRL 300 March 1, 2010 Multiple Choices (1 point each) 1. Interest earned on both the initial principal and the interest reinvested from prior periods is called: A. free interest. B. dual interest. C. simple interest. D. interest on interest. E. compound interest. 2. Terry is calculating the present value of a bonus he will receive next year. The process he is using is called: 3. What is the future value of $7,189 invested for 23 years at 9.25 percent compounded annually? Future value = $7,189 × (1 + .0925) 23 = $54,999.88
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon