CM 3: TVM Game 1 (Time Value of Money)
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Time Value of Money Terminologies
Topics of this game:
- The rate of return on the best available options of investment w/ same risk
- A single payment (received or paid) today or some other day
- A series of payments of equal amount at fixed, equal intervals of time
- An annuity with payments that occur at the end of each time-period
- An annuity with payments that occur at the beginning of each period
- Represents the current value or beginning amount that will be paid today
- The value to which an amount invested today will grow at end of a period
- The interest rate, that is paid in each period (payment cycles /schedules)
- Refers to time-intervals, also known as number of Payment Schedules/Cycles
- Multiple payments of different amounts over a period of time
