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MODULE 5

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Across
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an annuity or stream of equal payments over specified equal time period where the stream of benefits begins immediately, also known as immediate annuities.
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Also known as the mathematics of finance this is the financial concept that since money can be invested and thus increase in value, a dollar today is worth more than a dollar tomorrow.
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The value today of a future value based on a specified rate of return and a specified period of time
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A special type of annuity that is permanent and infinite and thus has maturity
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The actual annual rate of interest being earned or charged based on the number of compounding periods in a year
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The return provided on an investment to compensate the investor for the time preference of consumption. Often depicted numerically as the rate of return available by investment in 90-day U.S. Treasury Bills.
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The interest earned only on the amount invested
Down
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The interest earned on both principal and previously earned interest of an investment
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A quick and easy method of approximating the length of time it will take an invested amount to double in value when invested at a specified rate of interest. The rule may also be used to determine the rate of return that must be earned for an amount to double in value over a specified span of time.
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An annuity or series of equal payments or receipts over a series of equal time frames, where the payments or receipts occur at the end of each time period
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a loan payoff procedure that includes periodic payments comprised of both the repayment of principal and the payment of interest due on the declining balance of the loan. The values are presented in an amortization schedule
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The amount to which a dollar invested today can grow when invested at a specified rate of return for a specified period of time.
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time value of money term describing a series of equal payments or receipts over equal periods of time