Time value bingo

Exercise and reference answers

Clues and terms

1. Clue

   Moves value back to today.

   Item

   Discounting

2. Clue

   Moves value forward.

   Item

   Compounding

3. Clue

   Fixed periodic payments.

   Item

   Annuity

4. Clue

   First payment in a year.

   Item

   Ordinary

5. Clue

   First payment today.

   Item

   Annuity due

6. Clue

   Payments never stop.

   Item

   Perpetuity

7. Clue

   Schedule of repayment.

   Item

   Amortisation

8. Clue

   Counts compounding.

   Item

   Effective rate

9. Clue

   What investors demand.

   Item

   Required rate

Instructions

Read each clue and tap the term it describes.

Explanation