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When only supply or only demand changes, we can predict the resulting changes in
Desired Rate of Return
The minimum rate of return on an investment that an investor considers acceptable, given its risk and alternative options.
Present Value Index
A ratio used to evaluate the relative profitability of an investment or project by comparing the present value of cash inflows to the present value of cash outflows.
Interest
The charge for borrowing money, typically expressed as an annual percentage rate, or the income earned from lending funds.
Annuity
A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.
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