Chapter 5 Notes Flashcards by nico galliani

Q

compounding is a synonym for?

A

Future value

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Q

Discounting is a synonym for?

A

Present value

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Q

annuity

A

a sequence of equal cash flows

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Q

ordinary annuity

A

end

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Q

annuity due

A

beginning

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Q

If N increases,,

A

Future value increases

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Q

If Interest rate increases

A

present value decreases

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Q

A

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