A$.$ A series of equal cash flows that occur at the beginning of each of the equally spaced

intervals $($such as daily, monthly, quarterly, and so on$).$

Time value of money

Amortized loan

Ordinary annuity

Annual percentage rate

Annuity due

Perpetuity

Future value

Amortization schedule

Opportunity cost of funds

B$.$ A cash flow stream that is created by an investment or loan that requires its cash flows to

take place on the last day of each quarter and requires that it last for $10$ years.

C$.$ A schedule or table that reports the amount of principal and the amount of interest that

make up each payment made to repay a loan by the end of its regular term.

D$.$ A cash flow stream that is generated by a share of preferred stock that is expected to pay

dividends every quarter indefinitely.

E$.$ A loan in which the payments include interest as well as loan principal.

F$.$ The process of determining the present value of a cash flow or series of cash flows to be

received or paid in the future.

G$.$ A concept that maintains that the owner of a cash flow will value it differently, depending

on when it occurs.

H$.$ An interest rate that reflects the return required by a lender and paid by a borrower,

expressed as a percentage of the principal borrowed.

I. A rate that represents the return on an investor's best available alternative investment of

equal risk.

J$.$ The name given to the amount to which a cash flow, or a series of cash flows, will grow

over a given period of time when compounded at a given rate of interest.

Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following

equations can be used to solve for the present value of an ordinary annuity?

PMT $\{\frac{(1+r{)}^n-1}{r}\}(1+r)$

PMT $\{\frac{(1+r{)}^n-1}{r}\}$

$PM\frac{T}{r}$

PMT $\frac{1-[\frac{1}{(1+r{)}^n}]}{r}$