Finance, or financial management, requires the knowledge and precise use of the language of the field. Select the ten terms relating to the base 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 A rate that represents the retum on an investor's best available aterrative Investment of equal risk A series of equal constant) cash Bows receipts or payments that are expected to continue forever MITED PAYS The concept that states that the timing of the receptor payment of a cash flow will thes holder of the cash flow An interest rate that reflects the retum required by a tender and paid by a borrower expressed percentage of the principal borrowed to your your The process of determining the present value of a cash flow or series of cash flows to be received or paid in the future A series of equal cash flows that occur at the end of each of the equally spaced intervals (such as daly monthly, quarterly, and so on) A series of equal cash flows that occur at the beginning of each of the equally spaced intervals such as daily, monthly, quarterly, and so on) The name given to the amount to which a cash flow, or a series of cash flows, wil grow over a given The concept that states that the timing of the receipt or payment of a cash flow will affect its value to the holder of the cash flow An interest rate that reflects the retum required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed The process of determining the present value of a cash flow or series of cash flows to be received or paid in the future A series of equal cash flows that occur at the end of each of the equally spaced intervals (such as daly monthly, quarterly, and so on) A series of equal cash flows that occur at the beginning of each of the equally spaced intervals (such as daly, monthly, quarterly, and so on) LIMITED 6 DAYS The name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest A loan in which the payments include interest as well as loan principal s to your ter your A schedule or table that reports the amount of principal and the amount of interest that make up each payment made to repay a loan by the end of its regular term 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 annuity due? O PMT * (1 - [1/(1 + r)")) O PMT *((1 - 11/(1+r)" 1) / )*(1 + r) Chapter 4 Assignment a Search The process of determining the present value of a cash flow or series of how to be morredor paid in the future A series of equal cash flows that occur at the end of each of the equally spaced tervis (uth as daly monthly, quarterty, and so on) A series of equal cash flows that occur at the beginning of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on) The name given to the amount to which a cash flow, or a series of cash flows, wil grow over a given period of time when compounded at a given rate of interest A loan in which the payments include interest as well as loan principal LIMITED 6 DAYS A schedule or table that reports the amount of principal and the amount of nterest that make up each payment made to repay a loan by the end of its regular term 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 annuity due? s to your ter your O PMT X (1 - 11/(1+r)"] O PMT X ((1 - [1/(1 + )" ]> /)*(1 + r) OPT* {[(1 + r)" - 11/)*(1 + r) O PMT/ ve Continue Grade Now Continue without saving