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19 Cards in this Set
- Front
- Back
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Accounts associated with annuity payments |
Annuities |
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Compound interest rate is fixed over a specific period of time |
Annuity payments |
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"The end of each year" |
Annuities |
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Has deadline |
Annuity certain |
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Payable for indefinite duration |
Annuity uncertain |
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Types of annuity certain |
Simple and general |
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Interest conversion equal to payment interval |
Simple annuity |
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Interest conversion is UNEQUAL to payment interval |
General annuity |
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Annual |
Interval 12 Period 1 |
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Semi annual (semester) |
Interval 6 Period 2 |
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Quarterly |
Interval 3 Period 4 |
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Monthly |
Interval 1 Period 12 |
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Simple annuity |
Ordinary, annuity due, deferred |
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Ordinary |
Periodic payment made is made at the END |
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Annuity due |
Periodic payment made at the BEGINNING |
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Deferred annuity |
Periodic payment made at SOME LATER DATE |
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Future value ( maturity value) |
Total payment with interest earned |
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Present value |
Must be invested today for the regular payments |
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Amortization |
(Loan) sequence of regular or equal payments. Must have equal intervals of time (interest principal) |
