Question

Listed below are several terms and phrases associated with concepts discussed in the chapter. Pair each item from List A (by letter with the item from List B that is most appropriately associated with it List A List B 1. Interest a First cash flow occurs one period after agreement begins 2. Monetary asset b. The rate at which money will actually grow during a year 3. Compound interest c. First cash flow occurs on the first day of the agreement 4. Simple interest d. The amount of money that a dollar will grow to 5. Annuity e Amount of money paid received in excess of amount borrowed lent 16. Present value of a single amount Obligation to pay a sum of cash, the amount of which is fixed 7. Annuly due 9. Money can be invested today and grow to a larger amount 8. Future value of a single amounth No fixed dollar amount attached 9. Ordinary annuity Comouted by multiplying an invested amount by the interest rate 10. Hective rate or yield i nterest calculated on invested amount plus accumulated interest 111. Nonmonetary asset A series of equalsed cash flows 12 Time value of money Amount of money required today that is equivalent is given ure amount Im. Claim to receive a fixed amount of money

Answer 1

No.	List A	List B
1	Interest	e
2	Monetary asset	m
3	Compound interest	j
4	Simple interest	i
5	Annuity	k
6	Present value of a single amount	L
7	annuity due	c
8	Future value of a single amount	d
9	Ordinary annuity	a
10	Effective rate or yield	b
11	Non monetary asset	h
12	Time value of money	g
13	Monetary liability	f

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