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Listed below are several terms and phrases associated with concepts discussed in the chapter. Pair each item from List A with the item from List
Listed below are several terms and phrases associated with concepts discussed in the chapter. Pair each item from List A with the item from List B by letter that is most appropriately associated with it
tableList List B Interest,a First cash flow occurs one period after agreement begins Monetary asset,b The rate at which money will actually grow during a year Compound interest,c First cash flow occurs on the first day of the agreementd Simple interest,d The amount of money that a dollar will grow toe Annuity,e Amount of money paid or received in excess of amount borrowed or lent Present value of a single amount,f Obligation to pay a sum of cash, the amount of which is fixeda Annuity due,g Money can be invested today and grow to a larger amountc Future value of a single amount,h No fixed dollar amount attachedi Ordinary annuity,i Computed by multiplying an invested amount by the interest rateb Effective rate or yield,j Interest calculated on invested amount plus accumulated interesth Nonmonetary asset,k A series of equalsized cash flows Time value of money,tableI Amount of money required today that is equivalent to a given futureamountm Monetary liability,m Claim to receive a fixed amount of money
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