BUS 1350 Exam 2 Exam Questions with Correct Answers 100% Verified by Experts| 2025/2026
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cash flow direction in which money flows either to or from the user
negative cash flow money that's flowing from the user
positive cash flow money that's flowing to user
rate interest rate per period
Nper total number of payment periods
Pv present value of loan/investment
Fv future value of loan/investment at a future date
type specifies whether payments are made at the end of each period or at beginning
PMT used to calculate the payment per period based on a specific interest rate and term
rate function used to calculate the interest rate per period for an investment or loan, given
that you know the present value of the loan, payment amount and number of payment periods
NPER used to calculate the number of payment periods for an investment or loan if you
know the loan amount, interest rate and payment amount
PPMT used to calculate the principal portion of a payment
, IPMT used to calculate the interest portion of a payment
CUMIMPT used to calculate the cumulative amount of interest paid over a specific number
of periods
CUMPRINC used to calculate the cumulative amount of principal paid over a specific number
of periods
bonds _________ typically have a fixed interest rate
face value how much the bondholder will receive at maturity
maturity length of time before the par value is paid to the bondholder
coupon interest rate the bond pays
yield amount of annual interest expressed as a percentage of par value and determines how
much investors will receive on their investment
PV used to calculate the present and current value of a series of future payments on an
investment assuming all future payments are equal
FV used to calculate the value of an investment with a fixed interest rate and term, as well
as present or current value of a series of future payments on an investment
NPV calculate the value of an investment by analyzing a series of future incoming and
outgoing cash flows that are expected to occur over the life of the investment
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cash flow direction in which money flows either to or from the user
negative cash flow money that's flowing from the user
positive cash flow money that's flowing to user
rate interest rate per period
Nper total number of payment periods
Pv present value of loan/investment
Fv future value of loan/investment at a future date
type specifies whether payments are made at the end of each period or at beginning
PMT used to calculate the payment per period based on a specific interest rate and term
rate function used to calculate the interest rate per period for an investment or loan, given
that you know the present value of the loan, payment amount and number of payment periods
NPER used to calculate the number of payment periods for an investment or loan if you
know the loan amount, interest rate and payment amount
PPMT used to calculate the principal portion of a payment
, IPMT used to calculate the interest portion of a payment
CUMIMPT used to calculate the cumulative amount of interest paid over a specific number
of periods
CUMPRINC used to calculate the cumulative amount of principal paid over a specific number
of periods
bonds _________ typically have a fixed interest rate
face value how much the bondholder will receive at maturity
maturity length of time before the par value is paid to the bondholder
coupon interest rate the bond pays
yield amount of annual interest expressed as a percentage of par value and determines how
much investors will receive on their investment
PV used to calculate the present and current value of a series of future payments on an
investment assuming all future payments are equal
FV used to calculate the value of an investment with a fixed interest rate and term, as well
as present or current value of a series of future payments on an investment
NPV calculate the value of an investment by analyzing a series of future incoming and
outgoing cash flows that are expected to occur over the life of the investment
