Finance Exam 2

Perpetuity

Click the card to flip 👆

1 / 7

Terms in this set (7)

annuity with NO END DATE

Annual Percentage Rate
"stated rate" or "Quoted rate"
periodic interest rate * # of periods per year

the original amount of a loan

Pure discount loan

simplest form of a loan

HAS AN END DATE

Ordinary annuity

cash flows occur at the end of each period

finite series of equal payments that occur at regular intervals
--> cash flows occur at the beginning of each period