Time Value of Money

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Across
  1. 2. The process of determining the present value of a payment or a stream of payments that will be received in the future
  2. 5. A factor used to calculate the periodic payment necessary to recover a capital investment over a specified period at a given interest rate
  3. 7. The principle that a sum of money has greater value now than it does in the future due to its potential earning capacity.
  4. 8. A fund established to set aside money over time for a future capital expenditure or debt repayment.
  5. 9. A series of equal payments or receipts made at regular intervals over a specified period
  6. 10. Interest calculated only on the principal amount, without compounding over time.
Down
  1. 1. The value of a current asset or cash flow at a future date, based on an assumed rate of growth or interest.
  2. 3. The process of earning interest on both the initial principal and the accumulated interest from previous periods
  3. 4. The interest rate used to determine the present value of future cash flows
  4. 6. The current worth of a future sum of money or stream of cash flows, discounted at a specific rate of interest