Foundations of Quantitative Reasoning
Exam 2
annuity -
a series of equal, regular payments
ordinary annuity -
a savings plan in which payments are made at the end of each month
annuity due -
a plan in which payments are made at the beginning of each period
future value of an annuity -
the accumulated amount at some future date
present value of a savings plan -
a lump sum deposit that would give the same end result as regular payments into the plan
total return -
the percentage change in the investment value : (A - P) / P x 100%
annual return -
the annual percentage yield (APY) that would give the same overall growth : (A/P) ^ (1/Y) -
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stock (or equity) -
gives you a share of ownership in a company
bond (or debt) -
represents a promise of future cash
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