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Unformatted text preview: 11.) Opportunity cost: trade off. Sometimes it is not possible to estimate. Ex. New car vs an old car; the cost 12.) Present Value: Worth at the current time being. Ex. 6,000 dollars now. With interest in future it will be more. 13.) Future Value: what something is projected to cost whether it is an increase or a decrease 14.) Annuities: a payment by intervals that you pay each month/ year, generating some sort of interest and is compounding as well. Ex. A retirement, life insurance (paying the premiums and is invested) 15.) Present value of an Annuity Simple interest-rarely used Interest= Principal*Rate*time Note the term interest will mostly be used to describe compound interest...
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This note was uploaded on 01/31/2012 for the course FINANCE 250 taught by Professor Maryevans during the Spring '12 term at Rutgers.
- Spring '12