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Study sets matching "value money"

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Study sets matching "value money"

23 terms
Value for money
anxious
out-of-town
receipt
convenience
niespokojny
poza miastem
paragon
wygoda
anxious
niespokojny
out-of-town
poza miastem
5 terms
Money Values
quarter
penny
dime
nickel
.25 cents
.01 cents
.10 cents
.05 cents
quarter
.25 cents
penny
.01 cents
11 terms
Money & Values
credit
debt
a bargain
overpriced
when you owe money
when something is a good, cheap price
when something costs more than it's worth
credit
debt
when you owe money
10 terms
Money Values
Quarter... $0.25
Dime... $0.10
Nickel... $0.05
Penny... $0.01
Twenty-five cents
Ten cents
Five cents
One cent
Quarter... $0.25
Twenty-five cents
Dime... $0.10
Ten cents
14 terms
Money Values!
Worth 1 cent
Worth 5 cents
Worth 10 cents
Worth 25 cents
penny
Nickel
Dime
Quarter
Worth 1 cent
penny
Worth 5 cents
Nickel
Value for money
foodstuffs
own- brand
cashier
value
artykuły spożywcze
własna marka
kasjer
cena
foodstuffs
artykuły spożywcze
own- brand
własna marka
value of money
inflation
disinflation
reflation
hyperinflation
A general and progressive increase in prices
a reduction in the rate of inflation
restoration of economic activity, consumer prices, etc., to h…
inflation that is out of control
inflation
A general and progressive increase in prices
disinflation
a reduction in the rate of inflation
17 terms
value of money
bank
cash
compound Interest
compounding
a financial institution that provides various products and se…
money in the form of paper currency or coins (as distinct fro…
earning interest on interest through reinvesting. The result…
the process of leaving an initial investment plus accumulated…
bank
a financial institution that provides various products and se…
cash
money in the form of paper currency or coins (as distinct fro…
10 terms
Money Values!
The Penny
The Nickel
The Dime
The Quarter
Worth 1 cent
Worth 5 cents
Worth 10 cents
Worth 25 cents
The Penny
Worth 1 cent
The Nickel
Worth 5 cents
12 terms
Money Identification and Value
Nickel
Penny
Dime
Quarter
Nickel
Penny
9 terms
Money values
Present Value
Future Value Continuous Income Stream
Capital Value
Continuous Income Stream
∫0>T f(t)e∧-rt
e∧rT ∫0>T f(t)e∧-rt
∫0>∞ f(t)e^-rt
∫0>x f(t)
Present Value
∫0>T f(t)e∧-rt
Future Value Continuous Income Stream
e∧rT ∫0>T f(t)e∧-rt
24 terms
Money - Value and Identification
Value of a penny.
Value of a nickel.
Value of a dime.
Value of a quarter.
1 ¢
5 ¢
10 ¢
25 ¢
Value of a penny.
1 ¢
Value of a nickel.
5 ¢
9 terms
30-Time value of money
Present Value formula?
Future value: find n when interest is…
Future value: find i when compounded?
Ordinary annuity
PV=FV/(1+r)^n
n=number of compounding periods... ex: an amount over 5 years t…
i=yearly interest per period... ex: i=6% for amount that compou…
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…
n=number of compounding periods... ex: an amount over 5 years t…
49 terms
Shops & value for money
baker`s
bookshop
butcher`s
chemist`s
Bäckerei (n)
Buchhandlung (n)
Metzgerei (n)
Apotheke (n)
baker`s
Bäckerei (n)
bookshop
Buchhandlung (n)
6 terms
Time Value of Money
Future Value of a Single Amount
Future Value of Annuity Due
Future Value of an Ordinary Annuity
Present Value
Future Value of a Single Amount
Future Value of Annuity Due
50 terms
Time Value of Money
future value
The only feasible purpose of financial…
The objective of wealth maximization t…
Financial management mainly focuses on
the amount of money in the future that an amount of money tod…
Wealth Maximization
Amount of returns expected... Timing of anticipated returns... Risk…
All elements of acquiring and using means of financial resour…
future value
the amount of money in the future that an amount of money tod…
The only feasible purpose of financial…
Wealth Maximization
14 terms
Time Value of Money
Principal
Fixed Interest Rate
Risk
Inflation
The original amount of money invested or saved.
The rate will not change for the lifetime of the investment.
The uncertainty of the outcome of an investment.
The steady rise in the general level of prices.
Principal
The original amount of money invested or saved.
Fixed Interest Rate
The rate will not change for the lifetime of the investment.
time.value.of.money
Amortized Loan
Annuity
Compound annuity
Compounding
a loan paid off in equal installments composed of both princi…
a series of equal payments; these payments are made at the en…
an investment that involves depositing the same amount of mon…
the number of periods during the year where interest is calcu…
Amortized Loan
a loan paid off in equal installments composed of both princi…
Annuity
a series of equal payments; these payments are made at the en…
34 terms
Time Value of Money
PV Equation
FV Equation
DCF Equation
Annuity
PV = FV/(1+r)^t
FV=PV(1+r)^n
Cash payments of equal amounts over equal time intervals
PV Equation
PV = FV/(1+r)^t
FV Equation
FV=PV(1+r)^n
19 terms
Quant - Time Value of Money
Nominal Risk-Free Rate
Real Risk-Free Rate
Required Interest Rate on a Security
Effective Annual Rate
Real Risk-Free Rate + Expected Inflation Rate
A theoretical rate on a single-period loan when there is no e…
= Nominal Risk-Free Rate... + Default Risk Premium... + Liquidity P…
= (1 + periodic rate)ᵐ-1
Nominal Risk-Free Rate
Real Risk-Free Rate + Expected Inflation Rate
Real Risk-Free Rate
A theoretical rate on a single-period loan when there is no e…
15 terms
Time Value of Money
Present Value
Future Value
Interest Rate
Symbol for Time
earlier money on a time line ... -Cash Outflow ... PV
later money on a time line ... Cash inflow ... FV
exchange rate between earlier money and later money ... I/Y
N
Present Value
earlier money on a time line ... -Cash Outflow ... PV
Future Value
later money on a time line ... Cash inflow ... FV
7 terms
Finance: Time Value Of Money
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 specif…
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 specif…
17 terms
Decision Making & Value of Money
Rational decision
Self-interest
Net Benefit
Marginal Benefit
benefits the decision maker as much as possible
an individual makes decisions for his or her own benefit
benefits (measured in dollars) minus the cost of the choice
the additional benefit of doing something one more time
Rational decision
benefits the decision maker as much as possible
Self-interest
an individual makes decisions for his or her own benefit
15 terms
Time Value of Money
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 ti…
Interest earned on the reinvestment of previous interest paym…
Interest earned on both the initial principal and the interes…
Future Value
The amount an investment is worth after one or more periods.
compounding
The process of accumulating interest in an investment over ti…
22 terms
Time Value of Money
Time value of money
Discount
Interest rate
Opportunity cost
As a topic in investment mathematics deals with equivalence r…
Cut the value of a payment based on how much time passes befo…
A rate of return that reflects the relationship between diffe…
The value that investors forego by choosing a particular cour…
Time value of money
As a topic in investment mathematics deals with equivalence r…
Discount
Cut the value of a payment based on how much time passes befo…
10 terms
Time Value of Money
Time value of money
Interest Rate
Risk
Inflation
States that a dollar has a greater value at the present time…
Amount of money that will be paid to an investor for allowing…
The amount of uncertainty in the investment and its future gr…
The rise of the price of goods and services in our economy.
Time value of money
States that a dollar has a greater value at the present time…
Interest Rate
Amount of money that will be paid to an investor for allowing…
11 terms
Interest/time value of money
Time value of money
Rule of 72
Annual Percentage Rate (APR)
Usury laws
Money is worth more today than the same amount of money in th…
Tool that helps you figure out how long it will take to doubl…
The true cost of credit that must disclosed on the loan agree…
Laws against charging unfair interest rates for loans
Time value of money
Money is worth more today than the same amount of money in th…
Rule of 72
Tool that helps you figure out how long it will take to doubl…
57 terms
The Time Value of Money
What is an Interest Rate?
real risk-free rate
inflation premium
default risk
1) The price of money or required rate of return... 2) An opport…
delaying consumption
the loss of purchasing power
the risk of getting stiffed
What is an Interest Rate?
1) The price of money or required rate of return... 2) An opport…
real risk-free rate
delaying consumption
26 terms
Chapter 4 Time Value of Money
Time Value of Money
Compounding
Discounting
Perpetuity
The idea that it is only possible to compare cash flows occur…
The process of moving cash forward in time over more than one…
The process of moving cash backwards in time. When interest r…
A stream of cash flows that is received over equal, periodic…
Time Value of Money
The idea that it is only possible to compare cash flows occur…
Compounding
The process of moving cash forward in time over more than one…
Understanding the value of money
Nickel
Dime
Penny
Half-Dollar
Value of 5 cents
Value of 10 cents
Value of 1 cent
Value of 50 cents
Nickel
Value of 5 cents
Dime
Value of 10 cents
9 terms
Economics and Time Value of Money
Principal
Compound Interest
Economics
Time Value of Money
Finance. a capital sum, as distinguished from interest or pro…
interest paid on both the principal and on accrued interest.
(used with a singular verb) the science that deals with the p…
what the money is worth at that time
Principal
Finance. a capital sum, as distinguished from interest or pro…
Compound Interest
interest paid on both the principal and on accrued interest.
Time Value of Money
Present Value
Future Value
Rate of Return
Compounding
PV: what the investment is worth today. pv should be less tha…
FV: what the investment is worth in the future
ROR: the growth rate of an investment over the years
the idea of earning interest on interest
Present Value
PV: what the investment is worth today. pv should be less tha…
Future Value
FV: what the investment is worth in the future
13 terms
Time Value of Money
time value of money
compounded interest
necessary adjustments to i and n
future value of a lump sum
compounded interest
earns interest on both principal invested as well as all prev…
i % number of compounds per year... n * number of compounds per…
pv * future value factor (i, n)
time value of money
compounded interest
compounded interest
earns interest on both principal invested as well as all prev…
23 terms
Time Value of Money
would you want money now or later
Comparing cash flows of different proj…
timeline
Interest
now because of interest
- time : sure dollar today is worth more than a dollar tomorr…
-cash outflows (negative values) ... -cash inflows (positive val…
-the cost of borrowing money to use for certain period of tim…
would you want money now or later
now because of interest
Comparing cash flows of different proj…
- time : sure dollar today is worth more than a dollar tomorr…
20 terms
Time Value of Money
Interest Rate
Time Factor
Simple Interest
Reinvesting
the percentage that is used to calculate interest expressed a…
length of time for which interest will be changed.
interest on an investment if not reinvested.
leaving principal and adding interest to accumulate interest.
Interest Rate
the percentage that is used to calculate interest expressed a…
Time Factor
length of time for which interest will be changed.
29 terms
Time Value of Money
Measurement and recording of liabiliti…
Time Value of Money
Simple Interest
Simple Interest Equation
Time Value of Money
= Compound Interest
Earns interest on the principal invested only... _ amount earned…
Principal X Rate X Time
Measurement and recording of liabiliti…
Time Value of Money
Time Value of Money
= Compound Interest
Time Value of Money
Bank
Cash
Compound Interest
Compounding
a financial institution to hold and loan money
...
interest earned on both the principal amount and any interest…
the accumulation of a sum of money in, say, a bank account, w…
Bank
a financial institution to hold and loan money
Cash
...
18 terms
time value of money
bank
cash
compound interest
compounding
a financial establishment that invests money deposited by cus…
money in the form of coins or banknotes, especially that issu…
interest paid on both the principal and on accrued interest.
Compounding is the process where the value of an investment i…
bank
a financial establishment that invests money deposited by cus…
cash
money in the form of coins or banknotes, especially that issu…
Time Value of Money
Bank
Cash
Compound Interest
Decision
a financial establishment that invests money deposited by cus…
money in coins or notes, as distinct from checks, money order…
Compound interest is interest calculated on the initial princ…
a conclusion or resolution reached after consideration
Bank
a financial establishment that invests money deposited by cus…
Cash
money in coins or notes, as distinct from checks, money order…
19 terms
Time Value of Money
Inflation
Nominal Value
Real Value
CPI - Consumer Price Index
Gradual price increase in the economy
Face Value
Purchasing Power
Measure of average prices paid over time in the prices paid b…
Inflation
Gradual price increase in the economy
Nominal Value
Face Value
16 terms
Time Value Money
Annual Percentage Rate (APR)
Effective Annual Rate (EFF or EAR)
EFF=
APR=
The rate typically quoted on a loan agreement is equal to the…
is annual rate of interest actually being earned, as opposed…
...
...
Annual Percentage Rate (APR)
The rate typically quoted on a loan agreement is equal to the…
Effective Annual Rate (EFF or EAR)
is annual rate of interest actually being earned, as opposed…
21 terms
Time Value of Money
Present Value
Future Value
Interest Rate
Number of Periods
Earlier money on a timeline
Later money on a timeline
"Exchange rate" between earlier money and later money
N
Present Value
Earlier money on a timeline
Future Value
Later money on a timeline
32 terms
Time Value of Money Module
Important to understand the role that…
Time Value
Specified sum today
The present value technique
We operate in the present time, therefore it is crucial to be…
Time value calculations can be made using the future value or…
The amount of cash at a particular date in the future that is…
refers to the current value of one or more future cash paymen…
Important to understand the role that…
We operate in the present time, therefore it is crucial to be…
Time Value
Time value calculations can be made using the future value or…
17 terms
Time Value of Money
Bank
Cash
Compound Interest
Compounding
a financial institution licensed to receive deposits and make…
legal tender or coins that can be used to exchange goods, deb…
interest calculated on the initial principal and also on the…
the process where the value of an investment increases becaus…
Bank
a financial institution licensed to receive deposits and make…
Cash
legal tender or coins that can be used to exchange goods, deb…
8 terms
Time Value of Money
Future Value at the end of period n
Present Value of Future Amount
Future Value of Ordinary Annuity
Present Value of Ordinary Annuity
FVn = PV x (1+r)ⁿ
PV= FVn/(1+r)ⁿ
FVn = CF x {[(1+r)ⁿ - 1]/r}
PVn= (CF/r) x [1- 1/(1+r)ⁿ]
Future Value at the end of period n
FVn = PV x (1+r)ⁿ
Present Value of Future Amount
PV= FVn/(1+r)ⁿ
17 terms
time value of money
bank
cash
compound Interest
compounding
a financial institution that provides various products and se…
money in the form of paper currency or coins (as distinct fro…
earning interest on interest through reinvesting. The result…
the process of leaving an initial investment plus accumulated…
bank
a financial institution that provides various products and se…
cash
money in the form of paper currency or coins (as distinct fro…
17 terms
Time Value Of Money
bank
cash
compound Interest
compounding
a financial institution that provides various products and se…
money in the form of paper currency or coins (as distinct fro…
earning interest on interest through reinvesting. The result…
the process of leaving an initial investment plus accumulated…
bank
a financial institution that provides various products and se…
cash
money in the form of paper currency or coins (as distinct fro…
16 terms
Time Value of Money
Present Value
Discounted
DCF
Amount (problem)
Value of a sum at a future time is the amount that must be de…
This value of a sum is its present value.
Discounted Cash Flow... present value, $95.38 is the discounted…
This type of problem involves a single amount of $ that grows…
Present Value
Value of a sum at a future time is the amount that must be de…
Discounted
This value of a sum is its present value.
21 terms
Time Value of Money
Effective Annual Rate
convert an annual stated rate to the E…
annuity
ordinary annuities and annuities due
rate of interest that investors actually realize as a result…
e^r - 1 = EAR... 6% stated rate - enter .06 [2nd] [e^x] - 1 = .…
is a stream of equal cash flows that occurs at equal interval…
ordinary = cash flows that occur at the end of each compoundi…
Effective Annual Rate
rate of interest that investors actually realize as a result…
convert an annual stated rate to the E…
e^r - 1 = EAR... 6% stated rate - enter .06 [2nd] [e^x] - 1 = .…
132 terms
Time Value of Money
Discuss the nature of depreciation (FI…
Discuss the nature of risk measurement
interest rate risk, equity risk, commo…
Describe the nature of cash flows (FI:…
...
...
...
A revenue or expense stream that changes a cash account over…
Discuss the nature of depreciation (FI…
...
Discuss the nature of risk measurement
...
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