a) The amount an investment is worth after one or more time periods is referred to as _______________ b) The process of finding the present value of some future amount is called _________________. c) Calculating the present value of a future cash flow to determine its value today is known as _________________.
a) The amount an investment is worth after one or more time periods is referred to as _______________ b) The process of finding the present value of some future amount is called _________________. c) Calculating the present value of a future cash flow to determine its value today is known as _________________.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Identify the concept.
a) The amount an investment is worth after one or more time periods is referred to as _______________
b) The process of finding the
c) Calculating the present value of a future cash flow to determine its value today is known as _________________.
d) Interest earned on the principal and may be for a number of years may be called ______________
e) ___________ is the process of accumulating interest in an investment over time to earn more interest.
f) The interest earned on both the initial principal and the interest reinvested from prior periods is referred to as ______ _______.
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