Finance Ch 4

The beginning value of an account or investment in a project is ___ value.

The difference between a savings account's present value and its future value at the end of the period is due to the ___ earned during the period.

The process of finding present values is also called?

The reverse process of discounting is?

A series of payments of constant amount over a specified number of periods is called?

Payments made on an annuity at the end of a period is call a ___ annuity.

Payments of an annuity due at the beginning of a period is called an annuity ___.

The present value of an uneven stream of future payments is the ___ of the PV's of the individual payments.

The quoted interest rate is called ___ while the ___ annual interest rate is needed when compounding is involved.

The ___ ___ is one of the most important tools in time value calculations. It helps visualizing what is happening.

An annuity that goes on forever is called?

___ loans are paid off in equal installments over time.

The breakdown of each loan payment as partly interest and partly principal is called?

The ___ cost rate is the rate of return that could be earned on an alternative investment.

The term for equal cash flows coming in at regular intervals is called?

___ ___ is the term designated for uneven cash flows.

The ___ annual rate is the rate that would have produced the same future value under annual compounding as would more frequent compounding at a given nominal rate.

The ___ percentage rate is the periodic rate times the number of periods per year.

The value of a business (or any assets or stock) is the ___ value of its expected future cash flows.

The future value of an uneven cash flow stream is also know as its ___ value

If a loan uses ___ compounding, then its nominal rate equals its effective rate.

___ time periods are used when payments occur within periods instead at either the beginning or end.

A ___ ___ is defined as a series of payments that increase at a constant rate.