HIST 2210 Final: Exam One Study Guide
Document Summary
Return of investment- return of the initial amount invested: return on investment- additional amount returned in excess of (or less than) the amount invested. Rate of return/expected rate of return: rate of return= dollar return/ original investment, expected rate of return- the amount the investor thinks will be returned (estimated rate of return) Present value of the amount of - the amount that, if invested at some rate of interest today, for a specified period of time, will equal at the end of that time period. Future value of the amount of - the amount that becomes at a future date, if invested at a specified annual interest rate and compounded a certain number of times per year over the investment period. Annuity: an annuity is simply a series of equal payments. (rent payments, car payments, etc. , two types of annuities, ordinary annuity (oa)- assumes that payments occur at the end of the period.
