Financial Maths Flashcards
(4 cards)
1
Q
Terminal Value
A
The terminal value of a cash flow represents the future value of that cash flow.
2
Q
Present value
A
The present value of a cash flow represents the current value of that cash flow, after adjustment for the time value of money.
3
Q
Annuity
A
Describes a certain pattern of cash flows, wherein a set amount of money is received, or paid, over a set period of time.
4
Q
Perpetuity
A
Term used to describe a pattern of cash flows, wherein a set amount of cash will be received or paid at regular intervals indefinitely.
