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Time value of money - Coggle Diagram

- - - - types
        
        annuity due:
        cash flow occurs at the
        beginning of each period.
        
        perpeptuity
        
        annuity with an infinite life
        
        Important in pricing assets such as stock
        
        ordinary annuity:
        cash flow occurs at the end of each period.
      - def
        
        An annuity is a stream of equal periodic cash flows, over a specified time period.
    - - def
        
        a stream of unequal periodic cash flows that reflect no particular pattern
    - - def
        
        A lump-sum amount either currently held or expected at some
        future date.
      - fv
      - pv