# FIN 100 Quiz 4 Updated

**FIN 100 Quiz 4 Updated**

**• Question 1**

**The rate of interest actually paid or earned, also called the annual percentage rate (APR), is the ________ interest rate.**

**• Question 2**

**Which of the following terms best describes an annuity due?**

**• Question 3**

**The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received.**

**• Question 4**

**A loan that is repaid in equal payments over a specified time period is referred to as a (n):**

**• Question 5**

**Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years?**

**• Question 6**

**If $1,000 were invested now at a 12% interest rate compounded annually, what would be the value of the investment in two years?**

**• Question 7**

**For positive interest rates, the future value interest factor is**

**• Question 8**

**The present value of a $20,000 perpetuity at a 7 percent discount rate is**

**• Question 9**

**A series of equal payments or receipts that occur at the beginning of each of a number of time periods is referred to as:**

**• Question 10**

**The basic future and present value equations contain four variables. Which one of the following isnot included?**