Match the following terms with the appropriate definition.
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1 points
QUESTION 3
Match the following terms with the appropriate definition.
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Future Value | Accumulation of an amount with interest. |
Time value of money | A dollar now is worth more than a dollar later. |
Monetary Asset | Claim to a fixed amount of cash. |
Present value of a single amount | Amount today equivalent to a specified future amount. |
Simple interest | Based on initial investment only. |
3 | |
Interest | Rent paid or received for the use of money. |
Monetary asset | Claim to a fixed amount of cash |
Expected cash flow approach | The rate to use is the risk-free rate of interest. |
Present value of a single amount. | Amount of money required today that is equivalent to a given future amount. |
Future value of a single amount | The amount of money that a dollar will grow to. |
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