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Describe the concept of continuity,name and describe the three continuity schedules and give an example of when each would be best utilized.
Discount Rate
The interest rate used to determine the present value of future cash flows in discounted cash flow analysis. It represents the opportunity cost of investment.
Time Value
The idea that presently available money surpasses the value of the same sum in the future, due to potential income it could generate.
Compounded Quarterly
The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a quarterly basis.
Semi-Annually
Occurring twice a year, typically every six months, often used in the context of payments, interest calculations, or reporting periods.
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