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Define each of the following terms:

a. PV; I; INT; FVN; PVAN; FVAN; PMT; M; INOM

b. Opportunity cost rate

c. Annuity; lump-sum payment; cash flow; uneven cash flow stream

d. Ordinary (or deferred) annuity; annuity due

e. Perpetuity; consol

f. Outflow; inflow; time line; terminal value

g. Compounding; discounting h. Annual, semiannual, quarterly, monthly, and daily compounding i. Effective annual rate (EAR or EFF%); nominal (quoted) interest rate; APR; periodic rate

j. Amortization schedule; principal versus interest component of a payment; amortized loan What is an opportunity cost rate.

Financial Management, Finance

  • Category:- Financial Management
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