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Finance_5

The Time Value of Money

QuestionAnswer
The situation in which interest paid on an investment during the first period is added to the principal. During the second period, interest is earned on the original principal plus the interest earned during the first period. Compound Interest
Annuity
An annuity in which the payments occur at the beginning of each period. Annuity Due
An annuity with an infinite life. Perpetuity
Amortized Loan
Created by: Wilkins188
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