Question

Match the following terms with the description below. Annuity Compound interest [Choose ] ✓ A series of equal payments made over equal time periods. The amount of money that accumulates at some future date as a result of making equal payments over equal intervals of time and The amount of money that, if invested at some rate of interest today, will generate a set number of equal periodic payments that are made The process of adding interest to principal for purposes of interest calculation. The amount that $1 becomes at a future date, if invested at a specified annual interest rate and compounded a certain number of times Interest borrowed only on the amount borrowed. Interest that is based on a principal amount that includes interest from previous time periods. The amount that, if invested today at some compound interest rate for a specified period of time, will equal $1 at the end of that time [Choose] Compounding Future value of an annuity [Choose] Future value of the amount of $1 [Choose] Present value of an annuity [Choose] Present value of the amount of $1 Choose Simple interest [Choose]

Answer 1

a. Annuity b. Compound interest A series of equal payments made over equal time periods. Interest that is based on a principal amount that includes interest from previous time periods. The process of adding interest to principal for purposes of interest calculation C. Compounding The amount of money that accumulates at some future date as a result of making equal payments over equal intervals of time and earning a specified rate of interest over that time period. d Future value of an annuity The amount that $1 becomes at a future date, if invested at a specified annual interest rate and compounded a certain number of times per year over the investment period e. Future value of the amount of $1 The amount of money that, if invested at some rate of interest today, will generate a set number of equal periodic payments that are made over equal time interval f. Present value of an annuity g. h. The amount that, if invested today at some compound interest rate for a specified period of time, will equal $1 at the end of Present value of the amount of $1 that time. Simple interest Interest borrowed only on the amount borrowed.