Define each of the following terms 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 (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) nominal (quoted) interest rate APR periodic rate j Amortization schedule principal versus interest component of a payment amortized loan

Question: Define each of the following terms: a. PV; I; INT; FVN; PVAN; FVAN; PMT; M; INOM b. Opportunity cost rate c. Annuity; lump sum payment;

Define each of the following terms:
a. PV; I; INT; FVN; PVAN; FVAN; PMT; M; INOM
b. rate
c. lump sum payment; cash flow; uneven cash flow stream
d. Ordinary (deferred) due
e. Perpetuity; consol
f. Outflow; inflow; time line; terminal value
g. discounting
h. Annual, semiannual, quarterly, monthly, and daily
i. Effective annual rate (EAR); nominal (quoted) interest rate; APR; periodic rate]
j. Amortization schedule; principal versus interest component of a payment; amortized loan?

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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 full answer

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