Term Answer Discounting A. Description 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). A rate that represents the return on an investor's best available alternative investment of equal risk. Time value of money B. Amortized loan C. Ordinary annuity D. Annual percentage rate E. A table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components. A loan in which the payments include interest as well as loan principal. An interest rate that reflects the return required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed. A cash flow stream that is created by a lease that requires the payment to be paid on the first of each month and a lease period of three years. A concept that maintains that the owner of a cash flow will value it differently, depending on when it occurs. Annuity due F. Perpetuity G. Future value H. Amortization schedule I. A series of equal (constant) cash flows (receipts or payments) that are expected to continue forever. A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate. One of the four major time value of money terms; the amount to which an individual cash flow or series of cash payments or receipts will grow over a period of time when earning interest at a given rate of interest. Opportunity cost of funds J