fin 3390 quiz #1

Question 1

a single payment (received or made) that occurs either today or at some date in the future; is an amount paid all at once, as opposed to an amount that is paid in installments.

Answer 1

lump-sum amount

Question 2

The principles and computations used to revalue cash payoffs from different times so they are stated in dollars of the same time period.

Answer 2

time value of money

Question 3

the process of determining the future (or present) value of cash flow or series of cash flows when interest is paid twice per year