Business, 23.06.2021 21:20 briannaseaton123

Discounting A. A concept that maintains that the owner of a cash flow will value it differently, depending on when it occurs. Time value of money B. The name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest.
Amortized loan C. A type of security that is frequently used in mortgages and requires that the loan payment contain both interest and loan principal.
Ordinary annuity D. A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period.
Annual percentage rate E. A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years.
Annuity due F. A table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components.
Perpetuity G. A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.
Future value H. A rate that represents the return on an investor’s best available alternative investment of equal risk.
Amortization schedule I. A series of equal (constant) cash flows (receipts or payments) that are expected to continue forever.
Opportunity cost of funds J. A cash flow stream that is created by a lease that requires the payment to be paid on the first of each month and a lease period of three years.
Time value of money calculations can be solved using a mathematical equation, a financial calculator, or a spreadsheet. Which of the following equations can be used to solve for the future value of an ordinary annuity?

PMT x {[(1 + r)nn – 1]/r}

PMT x {1 – [1/(1 + r)nn]}/r

PMT x {[(1 + r)nn – 1]/r} x (1 + r)

FV/(1 + r)n

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 22:50

Assume that the governance committee states that all projects costing more than $70,000 must be reviewed and approved by the chief information officer and the it senior leadership team (slt). at this point, the cio has the responsibility to ensure that management processes observe the governance rules. for example, the project team might present the proposed project in an slt meeting for a vote of approval. what does this scenario illustrate about organizational structure?

Answers: 2

Answer

Business, 22.06.2019 14:20

Your uncle borrows $53,000 from the bank at 11 percent interest over the nine-year life of the loan. use appendix d for an approximate answer but calculate your final answer using the formula and financial calculator methods. what equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest

Answers: 1

Answer

Business, 22.06.2019 21:40

Rebel technology maintains its records using cash-basis accounting. during the year, the company received cash from customers, $43,000, and paid cash for salaries, $23,500. at the beginning of the year, customers owe rebel $1,000. by the end of the year, customers owe $6,600. at the beginning of the year, rebel owes salaries of $5,600. at the end of the year, rebel owes salaries of $3,300. determine cash-basis net income and accrual-basis net income for the year.

Answers: 2

Answer

Business, 23.06.2019 01:50

You are looking at a one-year loan of $16,500. the interest rate is quoted as 8.7 percent plus two points. a point on a loan is 1 percent (one percentage point) of the loan amount. quotes similar to this one are common with home mortgages. the interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 8.7 percent interest. what rate would you actually be paying here?

Answers: 3

Answer

You know the right answer?

Discounting A. A concept that maintains that the owner of a cash flow will value it differently, dep...

Questions