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D076 Finance Skills for Managers Terms and questions for module 5 £5.49
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D076 Finance Skills for Managers Terms and questions for module 5

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Ordinary annuities - a series of equal payments made at the end of consecutive periods over a fixed length of time Annuities due - a series of equal payments made at the beginning of consecutive periods Perpetuities - a constant stream of identical cash flows that continues forever Compounding ...

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  • February 3, 2024
  • 2
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
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D076 Finance Skills for Managers Terms
and questions for module 5
Ordinary annuities - ✔✔✔a series of equal payments made at the end of consecutive periods over a
fixed length of time



Annuities due - ✔✔✔a series of equal payments made at the beginning of consecutive periods



Perpetuities - ✔✔✔a constant stream of identical cash flows that continues forever



Compounding - ✔✔✔finding a future value given a present value



Discounting - ✔✔✔finding a present value given a future value.



Time value of money - ✔✔✔the idea that money that is available at the present time is worth more
than the same amount in the future



Annuities - ✔✔✔equally spaced cash flows of equal amounts.



Lolo invested $30,000 today in an account that gives 3% interest. Starting one year from today, she will
be able to pull out little over $3,500 a year. What does the $30,000 represent? - ✔✔✔Present value



Twenty years ago, Mateo started an investment account with $2,000. He then invested $100 into the
account every month at the end of each month. Today, he has $46,528 in the same account. What is the
term for the $100 monthly cash flows? - ✔✔✔Annuity



negative, positive - ✔✔✔When doing TVM calculations in Excel, it is important to make sure that cash
outflows are indicated with a ________ value and cash inflows are indicated with a ________ value.

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