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Match the items below by entering the appropriate code letter in the space provided Discount Rate 2 Present Value 3 Ordinary Annuity Annuity Due Simple

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Match the items below by entering the appropriate code letter in the space provided Discount Rate 2 Present Value 3 Ordinary Annuity Annuity Due Simple Interest Compound interest 7 Annuity Discount Matchreach of the options above to the below Calculated based upon interest not only on the principal but also on the interest earned " Also referred to as teh effective rate 3 A series of equal payments or receipts Calculated by taking the principal interest ratexime Calculated based upon interest not only on the principal but also on the interest earned Also referred to as teh etfective tate A series of equal payments or receipts Calculated by taking the principalmerest rate x time Once where the first payment stats at the begioning of the period One where the first payments at the end of each period 4 if the bond's contractual rate is less than the market, it will be sold at a The discounting of future cash flows is often referred to as the process of determining the

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