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g List B 1. Interest a. First cash flow occurs one period after agreement begins b. The rate at which money will actually grow during
g List B 1. Interest a. First cash flow occurs one period after agreement begins b. The rate at which money will actually grow during a year 2. Monetary asset 3. Compound interest 4. Simple interest c. First cash flow occurs on the first day of the agreement d. The amount of money that a dollar will grow to 5. Annuity Present value of a single amount f. 7. Annuity due 6. e. Amount of money paid/received in excess of amount borrowed/lent Obligation to pay a sum of cash, the amount of which is fixed Money can be invested today and grow to a larger amount h. No fixed dollar amount attached g. 8. Future value of a single amount 9. Ordinary annuity 10. Effective rate or yield 11. Nonmonetary asset 12. Time value of money 13. Monetary liability List A Computed by multiplying an invested amount by the interest rate j. Interest calculated on invested amount plus accumulated interest k. A series of equal-sized cash flows 1. Amount of money required today that is equivalent to a given future amount m. Claim to receive a fixed amount of money i.
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