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R.E

chap 3

QuestionAnswer
TVM time value of money
compound interest interest that stays with the investment and itself also earns interest, (earning interest on interest)
present value principal at the beginning of the year
I dollar amount of interest earned in 1 year.
FV principal at the end of n years, (future value)
effective annual yield = (FV-PV)/PV
t or f EFA is higher when monthly compounding is used? true
annuity a series of payments or deposits
FVA future value of an annuity, whe at will a fund be worth in the future if you make a series of payments over time...
PVA present value of an annuity, what is an investment worth now?
how many pieces of information are needed to to compute the final answer on a financial calculator 3 in order to solve for the 4th
discounting process opposite of compounding.
ordinary annuity end of period (mortgage payment)
annuity due beginning of period (rental payment)
Created by: delorya
 

 



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