Define each of the following terms: a. PV; I; INT; FVN; PVAN; FVAN; PMT; M; INOM b.
Question:
a. PV; I; INT; FVN; PVAN; FVAN; PMT; M; INOM
b. Opportunity cost rate
c. Annuity; lump-sum payment; cash flow; uneven cash flow stream
d. Ordinary (or deferred) annuity; annuity due
e. Perpetuity; consol
f. Outflow; inflow; time line; terminal value
g. Compounding; discounting
h. Annual, semiannual, quarterly, monthly, and daily compounding
i. Effective annual rate (EAR or EFF%); nominal (quoted) interest rate; APR; periodic rate
j. Amortization schedule; principal versus interest component of a payment; amortized loan
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...
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a PV present value is the value today of a future payment or stream of payments discounted at the appropriate rate of interest PV is also the beginning amount that will grow to some future value The p...View the full answer
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Related Book For 
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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