Finance, or financial management, requires the knowledge and precise use of the language of the field.

Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term.

Term	Answer		Description
Discounting		A.	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.
Time value of money		B.	One of the four major time value of money terms; the amount to which an individual cash flow or series of cash payments or receipts will grow over a period of time when earning interest at a given rate of interest.
Amortized loan		C.	A loan in which the payments include interest as well as loan principal.
Ordinary annuity		D.	An interest rate that reflects the return required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed.
Annual percentage rate		E.	A series of equal cash flows that occur at the end of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on).
Annuity due		F.	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.
Perpetuity		G.	A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.
Future value		H.	A rate that represents the return on an investors best available alternative investment of equal risk.
Amortization schedule		I.	A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely.
Opportunity cost of funds		J.	A cash flow stream that is created by a lease that requires the payment to be paid on the first of each month and a lease period of three years.