COMM101 Study Guide - Final Guide: Asteroid Family, Interest Rate, Eure

• School: University of Waterloo
• Department: Commerce
• Course: COMM101
• Professor: Laura Allan

Document Summary

There is a value in the time that you hold the money: Is one year from today worth the same as today: no! Real interest: (before risk and inflation factored in: what you could"ve earned if you invested on it, concept important to leases, mortgages, bonds, retirement contributions, stock valuation, project selection. Use all decimal places while executing calculation steps. Round final answer to nearest penny (two decimal places) Rate used to calculate present value is referred to as the discount rate. Ordinary annuity (beginning end of year) (cid:160) n 1. : multiple but equal payments over equal periods of time. Annuity that goes on forever (i. e. dividend on a preferred share) When interest and payment periods happen with the same frequency but occur more than once per year (not annual): Always multiply n by number of payments per year: to get total number of payments over entire life of annuity.