Descriptions Terms An interest rate that reflects the retum required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed One of the four major time value of money terms; the amount to which an individual cash flow or series of cash payments or receipts will grow over a period of time when eaming interest at a given rate of interest A cash flow stream that is created by a lease that requires the payment to be paid on the first of each month and a lease period of three years A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate 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