Question 3.Match the following terms with the appropriate definition.Future ValueTime value of moneyMonetary AssetPresent value of a single amountSimple interestA.Claim to a fixed amount of cash.B.A dollar now is worth more than a dollar later.C.Based on initial investment only.D.Amount today equivalent to a specified future amount.E.Accumulation of an amount with interest.
A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.
.Match the following terms with the appropriate definition.
Time value of money
Present value of a single amount
Claim to a fixed amount of cash.
A dollar now is worth more than a dollar later.
Based on initial investment only.
Amount today equivalent to a specified future amount.
Accumulation of an amount with interest.