KEY TERMS Define each of the following terms:

a. Time line

b. FVN; PV; I; INT; N; FVAN; PMT; PVAN

c. Compounding; discounting

d. Simple interest; compound interest

e. Opportunity cost

f. Annuity; ordinary (deferred) annuity; annuity due; perpetuity g. Uneven (nonconstant) cash flow; payment PMT); cash flow (CFt h. Annual compounding; semiannual compounding i. Nominal (quoted) interest rate; annual percentage rate APR ; effective (equivalent)

annual rate EAR or EFF j. Amortized loan; amortization schedule AppendixLO1