define or describe in your own word the fallowing:
a. Simple annuity
b. general annuity
c. ordinary annuity
d. Cash flow
e. fair market value
f. focal date
g. deferred annuity
a. Simple annuity
b. general annuity
c. ordinary annuity
d. Cash flow
e. fair market value
f. focal date
g. deferred annuity
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Simple Annuities
Due are annuities where payments are made at the beginning of. each period and the compounding period is EQUAL to the payment period (P/Y = C/Y) General Annuities Due are annuities where payments are made at the beginning of.
General Annuity Due.
A general annuity due has the following characteristics: Payments are made at the beginning of the payment intervals, and the payment and compounding frequencies are unequal. ... The last payment occurs one payment interval before the end of the annuity.
Ordinary Annuity
An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time. While the payments in an ordinary annuity can be made as frequently as every week, in practice they are generally made monthly, quarterly, semi-annually, or annually. The opposite of an ordinary annuity is an annuity due, in which payments are made at the beginning of each period. These two series of payments are not the same as the financial product known as an annuity, though they are related.
Cash flow
is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company's ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).
Fair market value or FMV
is the price that your home or other assets would sell for under normal market conditions. When you're selling your home, you'll have it assessed and appraised. This is known as an assessment of worth.
Focal Date
A specific time chosen to compare the time value of one or more dated sums of money. Future Value of a Sum of Money:(To Mini Lesson) The value at a specific future date of a payment or series of payments compounded at an appropriate interest rate.
General Annuity Due.
A general annuity due has the following characteristics: Payments are made at the beginning of the payment intervals, and the payment and compounding frequencies are unequal. ... The last payment occurs one payment interval before the end of the annuity.