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8 Cards in this Set
- Front
- Back
annuity |
level stream of cash flows for a fixed period of time |
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perpetuity |
level steam of cash flows forever
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fv of annuity c= initial amount t =time r= interest rate |
formulae provided for in test |
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growing annuity |
discount rate =R interest rate= g |
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present value for perpetuity |
=c/R |
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nominal interest rate |
int rate expressed in terms of int payment made each period |
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effective annual rate EAR |
interst rate expressed as if it were compunded once per year
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annual percentage rate APR |
HARMONIZED int rate that expresses the TC of borrowing or investing as a % int rate |