The Number of Periods in a Present Value Calculation Can

question 2

True/False

The number of periods in a present value calculation can only be expressed in years.

---

Definitions:

Budget

A plan for managing income and expenditure over a specific period.

Substantial Income

A significant amount of money earned, usually enough to support a high standard of living or fulfill financial goals.

Compounded Semiannually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods twice a year.

Compounded Annually

Interest calculation method where the interest earned is added to the principal at the end of each year, then the new total earns interest.