FINA 3332 Exam 2 (2026) Exam Questions & Answers | Latest Already
Graded A+ UPDATE 2025|2026!!
time value of money (TVM) - (ANSWER)The principles and computations used to revalue cash payoffs
from different times so they are stated in dollars of the same time period.
opportunity cost rate - (ANSWER)The rate of return on the best available alternative investment of equal
risk.
annuity - (ANSWER)A series of payments of an equal amount at fixed, equal intervals.
lump-sum amount - (ANSWER)A single payment (received or made) that occurs either today or at some
date in the future.
annuity due - (ANSWER)An annuity with payments that occur at the beginning of each period.
uneven cash flows - (ANSWER)Multiple payments of different amounts over a period of time.
ordinary annuity - (ANSWER)An annuity with payments that occur at the end of each period.
compounding - (ANSWER)The process of determining the value to which an amount or a series of cash
flows will grow in the future when compound interest is applied.
future value - (ANSWER)The amount to which a cash flow or series of cash flows will grow over a given
period of time when compounded at a given interest rate.
payment (PMT) - (ANSWER)This term designates constant cash flows-that is, the amount of an annuity
payment.
terminal value - (ANSWER)The future (ending) value of a cash flow stream.
Graded A+ UPDATE 2025|2026!!
time value of money (TVM) - (ANSWER)The principles and computations used to revalue cash payoffs
from different times so they are stated in dollars of the same time period.
opportunity cost rate - (ANSWER)The rate of return on the best available alternative investment of equal
risk.
annuity - (ANSWER)A series of payments of an equal amount at fixed, equal intervals.
lump-sum amount - (ANSWER)A single payment (received or made) that occurs either today or at some
date in the future.
annuity due - (ANSWER)An annuity with payments that occur at the beginning of each period.
uneven cash flows - (ANSWER)Multiple payments of different amounts over a period of time.
ordinary annuity - (ANSWER)An annuity with payments that occur at the end of each period.
compounding - (ANSWER)The process of determining the value to which an amount or a series of cash
flows will grow in the future when compound interest is applied.
future value - (ANSWER)The amount to which a cash flow or series of cash flows will grow over a given
period of time when compounded at a given interest rate.
payment (PMT) - (ANSWER)This term designates constant cash flows-that is, the amount of an annuity
payment.
terminal value - (ANSWER)The future (ending) value of a cash flow stream.
