Question: Define each of the following terms: a. PV; i; INT; FVn; PVAn; FVAn; PMT; m; iNom b. FVIFi,n; PVIFi,n; FVIFAi,n; PVIFAi,n c. Opportunity cost rate
Define each of the following terms:
a. PV; i; INT; FVn; PVAn; FVAn; PMT; m; iNom
b. FVIFi,n; PVIFi,n; FVIFAi,n; PVIFAi,n
c. Opportunity cost rate
d. Annuity; lump sum payment; cash flow; uneven cash flow stream
e. Ordinary (deferred) annuity; annuity due
f. Perpetuity; consol
g. Outflow; inflow; time line; terminal value
h. Compounding; discounting
i. Annual, semiannual, quarterly, monthly, and daily compounding
j. Effective annual rate (EAR); nominal (quoted) interest rate; APR; periodic rate
k. 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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