Match the terms relating to the basic terminology and concepts of the time value of money. a. A schedule or table that reports the amount of principal and the amount of interest that make up each payment made to repay a loan by the end of its regular term.
b. A loan in which the payments include interest as well as loan principal.
c. A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period.
d. A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.
e. The name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest.
f. A 6% return that you could have earned if you had made a particular investment.
g. A concept that maintains that the owner of a cash flow will value it differently, depending on when it occurs.

1. Discounting
2. Time value of money
3. Amortized loan
4. Ordinary annuity
5. Annual percentage rate
6. Annuity due
7. Perpetuity
8. Future value

a. Amortization schedule.

b. Amortized loan.

c. Annual percentage rate.

d. Discounting.

e. Future value.

f. Opportunity Cost of Funds.

g. Time value of money.

Explanation:

In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.

Simply stated, money refers to any asset which can be used to purchase goods and services by customers.

This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.

Some of the terms relating to the basic terminology and concepts of the time value of money includes;

a. Amortization schedule: A schedule or table that reports the amount of principal and the amount of interest that make up each payment made to repay a loan by the end of its regular term.

b. Amortized loan: A loan in which the payments include interest as well as loan principal.

c. Annual percentage rate: A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period.

d. Discounting: A process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.

e. Future value: The name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest.

f. Opportunity Cost of Funds: A 6% return that you could have earned if you had made a particular investment.

g. Time value of money: A concept that maintains that the owner of a cash flow will value it differently, depending on when it occurs.

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