Discounting A. B. Time value of money Amortized loan C. Ordinary annuity E. Annual percentage rate The process of determining the present value of a cash flow or series of cash flows to be received or paid in the future A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely 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 D. The concept that states that the timing of the receipt or payment of a cash flow will affect its value to the holder of the cash flow A table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components 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 earning interest at a given rate of interest G. A type of security that is frequently used in mortgages and requires that the loan payment contain both interest and loan principal 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) A rate that represents the return on an investor's best available alternative investment of equal risk An interest rate that reflects the return required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed Annuity due F. Perpetuity Future value H. I. Amortization schedule Opportunity cost of funds J. 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 annuity due? PMT/r PMT x {[(1 + r)n-1]/r} x (1 + r) PMT x {1 - [1 / (1 + r)"]} PMT x({1 - [1 / (1 + r)"]}/r) x (1 + r)