The interest rate that is quoted by a lender is referred to as which one of the following?

1.

An ordinary annuity is best defined by which one of the following?    A.  increasing payments paid for a definitive period of time B.  increasing payments paid forever C.  equal payments paid at regular intervals over a stated time period D.  equal payments paid at regular intervals of time on an ongoing basis E.  unequal payments that occur at set intervals for a limited period of time Refer to section 6.2

2.

Which one of the following accurately defines a perpetuity?    A.  a limited number of equal payments paid in even time increments B.  payments of equal amounts that are paid irregularly but indefinitely C.  varying amounts that are paid at even intervals forever D.  unending equal payments paid at equal time intervals E.  unending equal payments paid at either equal or unequal time intervals Refer to section 6.2

3.	Which one of the following terms is used to identify a British perpetuity?    A.  ordinary annuity B.  amortized cash flow C.  annuity due D.  discounted loan E.  consol Refer to section 6.2

4.	The interest rate that is quoted by a lender is referred to as which one of the following?    A.  stated interest rate B.  compound rate C.  effective annual rate D.  simple rate E.  common rate Refer to section 6.3