Questions
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What is the difference between a series of payments and an annuity? What are the two specific characteristics of a series of payments that make it an annuity?
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What effect does increasing the interest rate have on the future value of an annuity? Does a change from 4% to 6% have the same dollar effect as a change from 6% to 8%?
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What effect does decreasing the interest rate have on the present value of an annuity? Does a decrease from 7% to 5% have the same dollar effect as a decrease from 5% to 3%?
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What is the difference between an ordinary annuity and an annuity due?
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What is an iterative process?
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What does the amortization schedule tell you about a loan repayment?
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Explain the meaning of this statement: The current principal ...
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