Business
Business, 10.03.2020 22:39, mathisawsome123

Match the terms relating to the basic terminology and concepts of the time value of money below with the following descriptions. Read each description carefully and type the letter of the description in front of it. These are not necessarily complete definitions, but there is only one possible answer for each term. Amortization schedule, Amortized loan, Opportunity cost of funds, Future value, Perpetuity, Annuity due, Annual percentage rate, Discounting, Time value of money, Ordinary Annuity. a. A cash flow stream that is created by a lease that requires the payment to be paid on the first of each month and a lease period of three years b. A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years c. A schedule or table that reports the amount of principal and the amount of interest that make up each payment made to repay a loan by the end of its regular term ordinary annuity d. A series of equal (constant) cash flows (receipts or payments) that are expected to continue forever e. A loan in which the payments include interest as well as loan principal f. A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate g. The concept that states that the timing of the receipt or payment of a cash flow will affect its value to the holder of the cash flow h. A value that represents the interest paid by borrowers or earned by lenders expressed as a percentage of the amount borrowed or invested over a 12-month period i. A 6% return that you could have earned if you had made a particular investment j. One of the four major time value of money terms; the amount to which funds an individual cash flow or series of cash payments or receipts will grow over a period of time when earning interest at a given rate of interest

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