This exercise will quiz you about terminology used in this appendix.
At list of accounting terms with which you should be familiar appears below:
Annuity
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Interest
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Compound interest
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Present value
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Discounting the future amount(s)
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Present value of an annuity
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Future value of a single amount
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Principal
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Future value of an annuity
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Simple interest
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Instructions
For each item below, enter in the blank the term that is described.
- The amount borrowed or invested.
- A series of equal dollar amounts to be paid or received at evenly spaced time intervals (periodically).
- Payment for the use of another"s money.
- The interest computed on the principal only.
- The value at a future date of a given amount invested assuming compound interest.
- The sum of all the rents (payments or receipts) plus the compound interest on them.
- The value now of a given amount to be invested or received in the future assuming compound interest.
- A series of future receipts or payments discounted to their value now (today) assuming compound interest.
- The process of determining present value.
- The interest computed on the principal and any interest earned that has not been paid or received.