Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
1. Future Value
2. Future value of an annuity due
3. Annuity Future value of an ordinary annuity
4. Time value of money
A) Accumulation of a series of equal payments with the last payment accruing interest.
B) Accumulation of an amount with interest.
C) Accumulation of a series of equal payments with the last payment accruing no interest.
D) A dollar now is worth more than a dollar later.
E) A series of equal periodic payments.
Answers: 2
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