Chapter 7

Question 1

CUMIPMT function

Answer 1

A financial function that calculates cumulative interest for specified payment period

Question 2

CUMPRINC function

Answer 2

A financial function that calculates the cumulative principle paid on a loan between specified periods

Question 3

Database function

Answer 3

A function that analyzes data for selected records in a table

Question 4

IPMT function

Answer 4

A financial function that calculates periodic interest for a fixed term of loan

Question 5

Loan amortization table

Answer 5

A schedule showing monthly payments, interest per payment, amount towards paying off the loan and the remaining balance for each payment

Question 6

PV function

Answer 6

A function that calculates the present value of an investment

Question 7

NPV function

Answer 7

a function that calculates the net present value of an investment with periodic payment and discount rate

Question 8

monthly rate

Answer 8

the amount paid for a loan over a period of time