1. Basic concepts Finance, or financial management, requires the knowledge and preche use of the language of the field Select the ten terms relating to the basic terminology and concepts of the time value of money on the right with the descriptions of the term on the left. Read each description carefully and select the term that best corresponds to the definition given. (Note: These are not necessarily complete definitions, but there is only one possible term for each definition) Description Term One of the four major time we of money terms, the amount to which an individual cash flow or se of cash payments or receipts will grow over a period of time when earning interest at a given rate of Interest A process that involves calculating the current value of a hune cath tow or series of oth towboard on a certain interest rate A6% matun tut you could have earned if you had made a particular investment A value that presents the interest paid by bonowers or named by lenders, expressed as a percentage of the amount bomowed or invested over a 12-month period A cash flow stream that is created by a case that requires the payment to be paid on the first of each month and a sense period of three years month and A concept that maintains that the owner of a cash flow wil value it differently, depending on when it occurs A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely Amortization schedule (table) A table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components 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 A type of security that is frequently used in mortgages and requires that the loan payment contain both interest and loan principal Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the present value of an ordinary annuity? PMT / PMT *