Examlex
A buyer of a loan participation is exposed to
Present Value
The current worth of a future sum of money or stream of cash flows, given a specific rate of return.
Present Value
The present value of a future amount of money or series of cash flows, considering a certain rate of return.
Annuity
A monetary product that ensures a regular payment schedule to its holder, frequently used to secure a livelihood for people in their post-working years.
Compounding
The process whereby interest is credited to an existing principal amount as well as to interest already paid, causing the investment to grow at an accelerating rate.
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