Final (Ch. 4) Flashcards by Kenny McConnell | Brainscape

Q

Compounding

A

Interest on Interest

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Q

Simple Interest

A

Interest earned only on the original principal amount invested

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Q

Discounted Cash Flow (DCF)

A

Calculating the present value of a future cash flow to determine its value today.
The process of valuing an investment by discounting its future cash flows

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