Matching
Match each of the following terms with the appropriate definition.
Premises:
the process of finding the present value in a time value of money problem
what money is worth in today's dollars
the interest rate used in a present value problem
the concept that the value of money changes as time passes
obligation incurred when a company borrows money for longer than one year
the amount of money owed or borrowed
Responses:
discounting
present value
time value of money
principal
long-term liability
discount rate
Correct Answer:
Premises:
Responses:
the process of finding the present value in a time value of money problem
what money is worth in today's dollars
the interest rate used in a present value problem
the concept that the value of money changes as time passes
obligation incurred when a company borrows money for longer than one year
the amount of money owed or borrowed
Premises:
the process of finding the present value in a time value of money problem
what money is worth in today's dollars
the interest rate used in a present value problem
the concept that the value of money changes as time passes
obligation incurred when a company borrows money for longer than one year
the amount of money owed or borrowed
Responses:
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