Solution-The process of determining present value the

This exercise will quiz you about terminology used in this appendix.

At list of accounting terms with which you should be familiar appears below:

Annuity	Interest
Compound interest	Present value
Discounting the future amount(s)	Present value of an annuity
Future value of a single amount	Principal
Future value of an annuity	Simple interest

Instructions

For each item below, enter in the blank the term that is described.

The amount borrowed or invested.
A series of equal dollar amounts to be paid or received at evenly spaced time intervals (periodically).
Payment for the use of another"s money.
The interest computed on the principal only.
The value at a future date of a given amount invested assuming compound interest.
The sum of all the rents (payments or receipts) plus the compound interest on them.
The value now of a given amount to be invested or received in the future assuming compound interest.
A series of future receipts or payments discounted to their value now (today) assuming compound interest.
The process of determining present value.
The interest computed on the principal and any interest earned that has not been paid or received.

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