Time Value of Money Crossword

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Across
  1. 2. the rate of interest actually earned on an investment or paid on a loan as a result of compounding the interest, ________ Annual Rate
  2. 4. The effective interest rate is the rate actually ____ or earned
  3. 8. Annuity due will always be _______ than ordinary annuity
  4. 9. Most financial decisions involve costs and benefits that are spread out over ____
  5. 12. An ordinary (deferred) annuity has cash flows that occur at the ___ of each period
  6. 14. Perpetuity is a type of annuity which continues _________
  7. 15. an equal periodic cash flow paid to someone each year
  8. 16. cash flow with a permanent life
  9. 17. the value in the present of a sum of money, ______ Value
  10. 20. the interest rate before taking inflation into account, _________ Rate
Down
  1. 1. Compounding more frequently than once a year results in a ______ effective interest rate because you are earning interest on interest more frequently
  2. 3. The nominal interest rate is the stated or contractual rate of interest _______ by a lender or promised by a borrower
  3. 5. an annuity whose cash flow is due immediately at the beginning of each period, Annuity ___
  4. 6. An annuity due will always be _______ than an otherwise equivalent ordinary annuity because interest will compound for an additional period
  5. 7. the value of a current asset at a future date based on an assumed rate of growth, _______ Value
  6. 10. a series of equal cash flows made at the end of each period, such as monthly or quarterly,________ Annuity
  7. 11. An annuity due has cash flows that occur at the _________ of each period
  8. 13. Annuities can be either inflows or _________
  9. 18. Annuities are equally-spaced cash flows of equal size
  10. 19. refers to a stream of unequal periodic cash flows over a certain period of time. This type of cash flow has no particular pattern, ______ Stream Cash Flow