Flashcards in Module 6 (Time Value Of Money – 1) Deck (11):
The time value of money concept indicates that the value of an amount received today will be...
greater than the value of receiving the same amount in the future.
A percentage that represents the value of something that must be give it up to acquire or achieve something else.
The process of lowering a future value to become a smaller value in the present.
The process of increasing a present value into a larger future value.
The higher the interest rate used, the larger the future value will be of the...
The future value of an investment is higher when...
the number of periods and the interest increases.
When calculating a value on a HP–10bll, how do you get the value you're looking for?
Punch the value you're looking for last.
Consistent cash flow amount saved or received.
This is an annuity in which payments are received at the end of each period. (fixed-rate mortgage).
An annuity in which payments are received at the beginning of each period. (like a life insurance policy)