When discussing time-value-of-money it is necessary to understand some key terminology.Which of the following terms refers to a fixed amount of money paid or received at the end of every period (i.e.a series of equal lump sums)?
A)Future value
B)Present value
C)Ordinary annuity
D)Annuity due

Question

Quizplus · Accepted Answer

An ordinary annuity refers to a fixed amount of money paid or received at the end of every period (i.e. a series of equal lump sums). Future value refers to the value of an investment at a specified date in the future, while present value refers to the current value of a sum of money. An annuity due is also a series of equal lump sums, but the payments are made at the beginning of each period instead of at the end.

When Discussing Time-Value-Of-Money It Is Necessary to Understand Some Key