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Term Answer Description Discounting A. A schedule or table that reports the amount of principal and the amount of interest that make up each payment

Term Answer Description Discounting A. A schedule or table that reports the amount of principal and the amount of interest that make up each payment made to repay a loan by the end of its regular term. Time value of money B. A loan in which the payments include interest as well as loan principal. Amortized loan C. A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period. Ordinary annuity D. A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate. Annual percentage rate E. The name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest. Annuity due F. A 6% return that you could have earned if you had made a particular investment. Perpetuity G. A concept that maintains that the owner of a cash flow will value it differently, depending on when it occurs. Future value H. 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). Amortization schedule I. A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely. Opportunity cost of funds J. A series of equal cash flows that occur at the end of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on)

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