Time Value of Money Tools Flashcards
1
Q
Define Present Value (PV) of a Single Amount?
A
Prevent value of a single amount to be received in the future
2
Q
What is an annuity due?
A
payment at the BEGINNING of each period
3
Q
What is an ordinary annuity?
A
payment at the END of each period
4
Q
If the question in the problem is for an annuity due but the table they give you is an ordinary annuity, what do you du?
A
Go one period less on the table
