# Study sets matching "value money"

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Future Value

Compounding

Interest on Interest

Compound Interest

The amount an investment is worth after one or more periods.

The process of accumulating interest in an investment over tim…

Interest earned on the reinvestment of previous interest payme…

Interest earned on both the initial principal and the interest…

Future Value

The amount an investment is worth after one or more periods.

Compounding

The process of accumulating interest in an investment over tim…

Present value (PV)

Future value (FV)

Cash flows

Time value of money

Moving money backward in time to calculate a value today

Moving money forward in time to calculate a value at a specifi…

A series of cash payments received or paid out

Money today is worth more than the same money in the future

Present value (PV)

Moving money backward in time to calculate a value today

Future value (FV)

Moving money forward in time to calculate a value at a specifi…

Present Value formula?

Future value: find n when interest is c…

Future value: find i when compounded?

Ordinary annuity

PV=FV/(1+r)^n

n=number of compounding periods... ex: an amount over 5 years th…

i=yearly interest per period... ex: i=6% for amount that compoun…

Series of equal payment to be received at the end of the period

Present Value formula?

PV=FV/(1+r)^n

Future value: find n when interest is c…

n=number of compounding periods... ex: an amount over 5 years th…

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Annuity

Regular Annuity

Annuity Due

Graduated Annuity

An annuity is a series of equal cash flows paid at equal time…

The first payment is made one period in the future (at period…

The first payment is made immediately (at period 0).

A graduated annuity is a series of cash flows that increases o…

Annuity

An annuity is a series of equal cash flows paid at equal time…

Regular Annuity

The first payment is made one period in the future (at period…

bargain

credit

debt

fortune

something you buy that costs much less than normal

the ability of a customer to obtain goods or services before p…

an obligation to pay or do something

a very large amount of money

bargain

something you buy that costs much less than normal

credit

the ability of a customer to obtain goods or services before p…