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