Across
- 2. the rate of interest actually earned on an investment or paid on a loan as a result of compounding the interest, ________ Annual Rate
- 4. The effective interest rate is the rate actually ____ or earned
- 8. Annuity due will always be _______ than ordinary annuity
- 9. Most financial decisions involve costs and benefits that are spread out over ____
- 12. An ordinary (deferred) annuity has cash flows that occur at the ___ of each period
- 14. Perpetuity is a type of annuity which continues _________
- 15. an equal periodic cash flow paid to someone each year
- 16. cash flow with a permanent life
- 17. the value in the present of a sum of money, ______ Value
- 20. the interest rate before taking inflation into account, _________ Rate
Down
- 1. Compounding more frequently than once a year results in a ______ effective interest rate because you are earning interest on interest more frequently
- 3. The nominal interest rate is the stated or contractual rate of interest _______ by a lender or promised by a borrower
- 5. an annuity whose cash flow is due immediately at the beginning of each period, Annuity ___
- 6. An annuity due will always be _______ than an otherwise equivalent ordinary annuity because interest will compound for an additional period
- 7. the value of a current asset at a future date based on an assumed rate of growth, _______ Value
- 10. a series of equal cash flows made at the end of each period, such as monthly or quarterly,________ Annuity
- 11. An annuity due has cash flows that occur at the _________ of each period
- 13. Annuities can be either inflows or _________
- 18. Annuities are equally-spaced cash flows of equal size
- 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