Term Answer Discounting A. Description 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 rate that represents the return on an investor's best available alternative investment of Time value of money B. equal risk. Amortized loan C. Ordinary annuity D. Annual percentage rate E. Annuity due F. Perpetuity G. 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. A loan in which the payments include interest as well as loan principal. A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period. 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 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. A series of equal (constant) cash flows (receipts or payments) that are expected to continue forever. The process of determining the present value of a cash flow or series of cash flows to be received or paid in the future. 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. Future value H. Amortization schedule I. Opportunity cost of funds 1