10. Time Value of Money

Interest rates are generally expressed as a(n) _____ of the loan.

If $1 is compounded semiannually for 5 years at an annual interest rate of 2%, how many compounding periods will there be in total?

Given the following cash flow stream: $1,000 at the end of Year 1, $1,500 at the end of Year 2, and $2,000 at the end of Year 3, what is the future value at the end of Year 3 if the interest rate is 6.5% compounded annually?

Janet takes out a loan of $10,000 at an annual interest rate of 6ext{%}, to be repaid in equal monthly installments over 5 years. By the time Janet pays off her entire loan, how much total interest will she have paid?

Which of the following formulas correctly represents the future value of an ordinary annuity with periodic deposits of $P$, interest rate $r$ per period, and $n$ periods?

Which time value of money function calculates the total principal paid through a specified number of payments?

If Janet increases her monthly loan payment while keeping the interest rate and loan amount constant, what will be the impact on the number of months it will take her to pay off her loan?

What is the future value of $1 invested today at an annual interest rate of $r$ for $n$ periods, compounded once per period?

What is the effective annual rate (EAR) if the nominal annual interest rate is 14.9\% compounded quarterly?

Which term refers to the interest rate expressed as if it were compounded once per year, regardless of the actual compounding frequency?

When determining the accumulation value of a deferred annuity, which formula is most appropriate to use?

Money has a time value because:

The future value of a lump-sum investment will increase if you:

If a credit card has an APR (Annual Percentage Rate) of 24\%, what does this rate represent?

All else held constant, the present value of a bond increases when the: