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Distinguishing Among Time Value of Money Concepts Following is a list of key terms or phrases, through 14, along with their descriptions in a through
Distinguishing Among Time Value of Money Concepts Following is a list of key terms or phrases, through 14, along with their descriptions in a through n. Match each term with the most appropriate description Terms Description 1. Interest expense * Current value of an equal stream of payments starting at the end of the first period . 2. Interest revenue Process of earning interest on previously recorded interest 3. Present value of a single amount Amount that an equal stream of payments. Starting at the beginning of the period, will grow to 4. Present value of an ordinary annuity d. Recognition of a borrower's cost for using resources Present value of an annuity due e. Process of reducing a future amount to the present value by compound interest . 6. Future value of a single amount Current value of an equal stream of payments, starting at the beginning of the first period 7. Future value of an ordinary annuity Money in the future is worth less than the same amount today & Future value of an annuity due h. Recognition by the lender of the amount earned for loaning resources 9. Deferred annuity True compounded rate that equates the price of an instrument to the present value of the interest payments and face value 10. Compounding Amount that an equal stream of payments, starting at the end of the period will grow to . 11 counting Equivalent amount today of a future single amount 12. Principal LEqual stream of payments that begins after a specific period of time 13. Effective interest rate m. Future value of a single amount in current dollars 14. Time value of money n. Face amount of a bond
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