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annual percentage rate	Interest rate that is annualized using simple interest.
annuity	Equally spaced and level stream of cash flows. (See page(s) 94)
annuity due	Level stream of cash flows starting immediately. (See page(s) 100)
annuity factor	Present value of a $1 annuity. (See page(s) 96)
compound interest	Interest earned on interest. (See page(s) 79)
discount factor	Present value of a $1 future payment. (See page(s) 84)
discount rate	Interest rate used to compute present values of future cash flows. (See page(s) 83)
effective annual interest	Interest rate that is annualized using compound interest.
future value (fv)	Amount to which an investment will grow after earning interest. (See page(s) 79)
future value interest factor	Future value of a current cash flow of $1. (See page(s) 80)
growing annuity	A finite stream of cash flows growing at a constant rate. (See page(s) 105)
growing perpetuity	An infinite stream of cash flows growing at a constant rate. (See page(s) 104)
inflation	Rate at which prices as a whole are increasing (See page(s) 106)
nominal interest rate	Rate at which money invested grows (See page(s) 108)
perpetuity	Stream of level cash payments that never ends. (See page(s) 94)
present value (PV)	Value today of a future cash flow (See page(s) 83)
real interest rate	Rate at which the purchasing power of an investment increases. (See page(s) 108)
real value of $1	Purchasing power–adjusted value of a dollar. (See page(s) 107)
simple interest	Interest earned only on the original investment; no interest is earned on interest. (See page(s) 79)