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The Present Value of an Annuity Is the Sum of the Present

question 165

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The present value of an annuity is the sum of the present values of each cash flow.


Definitions:

Assignee

The party who receives rights or interests in a contract from the assignor.

Holder

An individual or entity that legally possesses a negotiable instrument, such as a check or promissory note, and has the right to enforce its terms.

Certificate Of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, issued by banks to individuals investing money for a period.

Principle Plus Interest

The total amount owed or invested, composed of the original sum (principal) and the earnings on that sum (interest).

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