Time value of money: annuity cash flow


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Respond to four questions and solve three computational problems about time value of money (TMV) as it applies to annuity cash flows.

You know how the TVM concept as applies to single cash flow. However, in real life you will come across financial applications that require multiple or annuity cash flows. That is why it is important to know how to apply the TVM concept to annuity cash flows; for example, how to amortize a mortgage or car loan.