ISYE FINAL EXAM MATCHING UPDATED
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question 1.
Factors that cannot readily be expressed in terms of financial units are known as
_________________________.
ANSWER
Intangible factors
Question 2.
Interest is equal to the difference between the total amount accrued and the __________________.
ANSWER
Original principal
Question 3.
In order to represent cash flow using the symbol A, the cash flow values must be uniform (i.e., the
same amount) and occur in ____________.
ANSWER
Consecutive interest periods
Question 4.
Of the five symbols P, F, A, i and n, every engineering economy problem will involve at least
___________ of them.
ANSWER
Four
Question 5.
The interest rate by corporations to evaluate the attractiveness of economic alternatives is known as
the _______________.
ANSWER
Minimum attractive rate of return
1/7
, Question 6.
In the uniform series factors, which involve the symbol A and P, the P value is always located
_________________
ANSWER
One interest period ahead of the first A value
Question 7.
A uniform series of deposits intended to accumulate to a given future amount of money is known as a
(an) _____________.
ANSWER
Sinking fund
Question 8.
A cash flow series which increases by a constant percentage is known as a (an) __________________.
ANSWER
Geometric series
Question 9.
In a conventional gradient, the gradient begins between interest periods _______________.
ANSWER
One and two
Question 10.
In a conventional gradient, the amount of money in period one is known as the ________________.
ANSWER
Base amount
Question 11.
In all interest factors, the rate must be a _____________.
ANSWER
Compound interest rate
2/7
ACTUAL QUESTIONS AND CORRECT ANSWERS
Question 1.
Factors that cannot readily be expressed in terms of financial units are known as
_________________________.
ANSWER
Intangible factors
Question 2.
Interest is equal to the difference between the total amount accrued and the __________________.
ANSWER
Original principal
Question 3.
In order to represent cash flow using the symbol A, the cash flow values must be uniform (i.e., the
same amount) and occur in ____________.
ANSWER
Consecutive interest periods
Question 4.
Of the five symbols P, F, A, i and n, every engineering economy problem will involve at least
___________ of them.
ANSWER
Four
Question 5.
The interest rate by corporations to evaluate the attractiveness of economic alternatives is known as
the _______________.
ANSWER
Minimum attractive rate of return
1/7
, Question 6.
In the uniform series factors, which involve the symbol A and P, the P value is always located
_________________
ANSWER
One interest period ahead of the first A value
Question 7.
A uniform series of deposits intended to accumulate to a given future amount of money is known as a
(an) _____________.
ANSWER
Sinking fund
Question 8.
A cash flow series which increases by a constant percentage is known as a (an) __________________.
ANSWER
Geometric series
Question 9.
In a conventional gradient, the gradient begins between interest periods _______________.
ANSWER
One and two
Question 10.
In a conventional gradient, the amount of money in period one is known as the ________________.
ANSWER
Base amount
Question 11.
In all interest factors, the rate must be a _____________.
ANSWER
Compound interest rate
2/7
