Description Term Answer I V Discounting . A cash flow stream that is created by...

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Description Term Answer I V Discounting . 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. Time value of money A 6% return that you could have earned if you had made a particular investment. . Amortized loan 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. Ordinary annuity A type of security that is frequently used in mortgages and requires that the loan payment D. contain both interest and loan principal. Annual percentage rate An interest rate that reflects the return required by a lender and paid by a borrower, . expressed as a percentage of the principal borrowed. Annuity due A series of equal cash flows that occur at the beginning of each of the equally spaced F. intervals (such as daily, monthly, quarterly, and so on) A concept that maintains that the owner of a cash flow will value it differently, depending on Perpetuity G. when it occurs. Future value A series of equal (constant) cash flows (receipts or payments) that are expected to continue . forever. Amortization schedule A process that involves calculating the current value of a future cash flow or series of cash I flows based on a certain interest rate Opportunity cost of funds One of the four major time value of money terms; the amount to which an individual cash J. flow or series of cash payments or receipts will grow over a period of time when earning interest at a given rate of interest

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