Vocab chapter unit 2 Fin Crossword
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
                      
 
 
Down: 2) A series of equal payments (in dollars), over a period of equal intervals, with a constant interest rate.3) Is an annuity where the payments are made at the BEGINNING of each period.5) Is a dollar amount that is the same each year forever. E.G. scholarship.6) Interest earned only the original principal amount invested.8) The amount an investment is worth after one or more periods. We are told the present value and then need to compound interest on for the number of periods in question, to arrive at the future value.10) You are given the future value and you need to ‘discount’ or divide off interest for the number of periods in question to arrive at the present value. The present value is the amount the investment, purchase or whatever, is worth in cash today. It is the same as IF someone were to offer you that amount of cash upfront now. Across: 1) Is an annuity where the payments are made at the END of each period.4) The process of accumulating interest in an investment over time to earn more interest. It is used in conjunction with future value, and is the multiplying interest on over time to get the future value.7) The interest rate used to calculate the present value of future cash flows.9) Interest earned on both the initial principal and on the interest reinvested from prior periods.11) The process of dividing interest off of future cash flows to arrive at the present value.12) The idea that INTEREST must be considered whenever we are paying or receiving monies over a time frame of one year or more. In other words, a dollar today does not equal a dollar received one year from now.
 

 

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