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Yesterday, Colleen went to an interesting lecture on relationship problems. She didn't take notes, because she isn't going to be tested on the lecture. Though she made no effort to memorize any of the information the speaker presented, she is able to repeat a great deal of it to a friend. In particular, she is able to remember the parts that she felt applied to her own past relationships. Which concept explains why?
Annual Payments
Payments made once a year, often in the context of loan repayments or investment incomes.
Interest
is the cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage of the principal.
Debt
An amount of money borrowed by one party from another, often used to make large purchases that cannot be funded by other means.
Present Value
The current price of a future monetary sum or a succession of cash flows, taking into account a certain rate of interest.
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