Bus.
BUS 350 Business Finance
Finance 350 SFSU
(San Francisco State University) Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/bus-finance-350-sfsu-
2417804
An i mportant tool used i n ti me val ue anal ysi s; i t i s a graphi cal representati on used
T i me Li ne
to show the ti mi ng of cash f l ows.
T he amount to whi ch a cash f l ow or seri es of cash f l ows wi l l grow over a gi ven
F uture Val ue
peri od of ti me when compounded at a gi ven i nterest rate.
Present Val ue T he val ue today of a f uture cash f l ow or seri es of cash f l ows.
T he ari thmeti c process of determi ni ng the f i nal val ue of a cash f l ow or seri es of
Compoundi ng
cash f l ows when compounded i nterest i s appl i ed.
, Bus.
BUS 350 Business Finance
Finance 350 SFSU
(San Francisco State University) Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/bus-finance-350-sfsu-
2417804
Compound I nterest Occurs when i nterest i s earned on pri or peri ods' i nterest.
Si mpl e I nterest Occurs when i nterest i s not earned on i nterest.
Opportuni ty Cost T he rate of return you coul d earn on an al ternati ve i nvestment of si mi l i ar ri sk.
T he process of f i ndi ng the present val ue of a cash f l ow or seri es of cash f l ows:
D i scounti ng
di scounti ng i s the reverse of compoundi ng.
, Bus.
BUS 350 Business Finance
Finance 350 SFSU
(San Francisco State University) Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/bus-finance-350-sfsu-
2417804
Annui ty A seri es of equal payments at f i xed i nterval s f or a speci f i ed number of peri ods.
Ordi nary Anwnui ty An annui ty whose payment occur at the end of each peri od.
Annui ty D ue An annui ty whose payments occur at the begi nni ng of each peri od.
F VAn T he f uture val ue of an annui ty of N peri ods.
BUS 350 Business Finance
Finance 350 SFSU
(San Francisco State University) Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/bus-finance-350-sfsu-
2417804
An i mportant tool used i n ti me val ue anal ysi s; i t i s a graphi cal representati on used
T i me Li ne
to show the ti mi ng of cash f l ows.
T he amount to whi ch a cash f l ow or seri es of cash f l ows wi l l grow over a gi ven
F uture Val ue
peri od of ti me when compounded at a gi ven i nterest rate.
Present Val ue T he val ue today of a f uture cash f l ow or seri es of cash f l ows.
T he ari thmeti c process of determi ni ng the f i nal val ue of a cash f l ow or seri es of
Compoundi ng
cash f l ows when compounded i nterest i s appl i ed.
, Bus.
BUS 350 Business Finance
Finance 350 SFSU
(San Francisco State University) Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/bus-finance-350-sfsu-
2417804
Compound I nterest Occurs when i nterest i s earned on pri or peri ods' i nterest.
Si mpl e I nterest Occurs when i nterest i s not earned on i nterest.
Opportuni ty Cost T he rate of return you coul d earn on an al ternati ve i nvestment of si mi l i ar ri sk.
T he process of f i ndi ng the present val ue of a cash f l ow or seri es of cash f l ows:
D i scounti ng
di scounti ng i s the reverse of compoundi ng.
, Bus.
BUS 350 Business Finance
Finance 350 SFSU
(San Francisco State University) Study Guide
Study this set o nline at: https://www.cram.co m/flashcards/bus-finance-350-sfsu-
2417804
Annui ty A seri es of equal payments at f i xed i nterval s f or a speci f i ed number of peri ods.
Ordi nary Anwnui ty An annui ty whose payment occur at the end of each peri od.
Annui ty D ue An annui ty whose payments occur at the begi nni ng of each peri od.
F VAn T he f uture val ue of an annui ty of N peri ods.
