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Term Definition Choice A Ordinary Annuity Most all consumer loans, such as auto loans and home mortgages, are this type of loan B Annuity Due
Term | Definition | Choice | |
A | Ordinary Annuity | Most all consumer loans, such as auto loans and home mortgages, are this type of loan | |
B | Annuity Due | The formula for the PV of an ordinary annuity | |
C | CF | The formula for the FV Interest Factor for an Annuity | |
D | =PMT * [ ( (1+r)^n - 1 ) / r ] | An analysis of the payments on a loan, breaking payments into principal and interest | |
E | =PMT * [ ( 1 - ( 1 / (1+r)^n ) ) / r ] | A loan for which all interest and principal is repaid at maturity | |
F | Perpetuity | An annuity with the first payment occuring immediately | |
G | Discount Loan | The formula for the FV of an ordinary annuity | |
H | Interest Only Loan | A stream of cash payments of equal amount, at regular intervals, with the first occuring one period in the future | |
I | Amortized Loan | An endless stream of equal cash payments | |
J | Amortization Schedule | PV Interest Factor for an Annuity | |
K | PVIFA | An indivdial casf flow - also referred to as PMT | |
L | = [ ( (1+r)^n - 1 ) / r ] | A loan for which periodic payments of interest are made, with all principal rerpaid at maturity |
The letter is associated to the term next to it and need to match it with the definitions! thanks!
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