Review for Midterm 2 Flashcards
1
Q
when money is leaving your bank account
A
NEGATIVE NUMBER
2
Q
when money is entering your bank account
A
POSITIVE NUMBER
3
Q
blue cell
A
FORMULA
4
Q
pink cell
A
Value
5
Q
what is the rate formula
A
RATE PER PERIOD
FORMULA= INTEREST RATE/PAYMENT PERIODS
if you obtain an automobile loan at a 10 percent annual interest rate and make monthly payments, your interest rate per month
10%/12=0.83%
6
Q
What is number of periods formula
A
Number of years * number of payments per year = number of payment periods
7
Q
Which two sections in FV formula either have to have a expression, or have to be referenicign an expression
A
RATE: INTEREST RATE/COMPOUNDING PERIODS
NPER: NUMBER OF YEARS * number of payment per year
8
Q
WHat unit is rate?
A
PER PERIOD!! ALWAYS DIVIDE IT
