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Finance Exam 2
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Perpetuity
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annuity with NO END DATE
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natalie_palmer56
Terms in this set (7)
Perpetuity
annuity with NO END DATE
APR
Annual Percentage Rate
"stated rate" or "Quoted rate"
periodic interest rate * # of periods per year
Principal
the original amount of a loan
Pure discount loan
simplest form of a loan
Annuity
HAS AN END DATE
Ordinary annuity
cash flows occur at the end of each period
Annuity due
finite series of equal payments that occur at regular intervals
--> cash flows occur at the beginning of each period
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