Distinguish Between Discrete and Continuous Variables

question 82

Essay

Distinguish between discrete and continuous variables.

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Definitions:

Ordinary General Annuity

A stream of equal payments made at regular intervals over a fixed period of time, where the payment period coincides with the interest period.

Present Value

The present estimate of a forward-looking sum of money or sequence of cash returns, using a determined rate of return.

Ordinary General Annuity

A series of equal payment or receipt amounts that occur at evenly spaced intervals over a fixed period, with payments made at the end of each period.

Present Value

The present value of a sum of money or series of cash inflows expected in the future, calculated using a particular rate of return.