Time Value of Money_ Annuity Cash Flow

August 14, 2024/in /by James

Time Value of Money: Annuity Cash Flow Scoring Guide

CRITERIA	NON-PERFORMANCE	BASIC	PROFICIENT	DISTINGUISHED
Explain why a saver would prefer more or less frequent interest compounding periods.	Does not identify why a saver would prefer more or less frequent interest compounding periods.	Explains why a saver would prefer more or less frequent interest compounding periods but omits key elements in the explanation.	Explains why a saver would prefer more or less frequent interest compounding periods.	Analyzes why a saver would prefer more or less frequent interest compounding periods and connects the analysis to relevant real-world examples.
Describe the uses of an amortization schedule.	Does not describe the uses of an amortization schedule.	Describes the uses of an amortization schedule but omits key elements.	Describes the uses of an amortization schedule.	Analyzes the uses of an amortization schedule and connects the analysis to relevant real-world examples.
Explain the purpose of an amortization schedule.	Does not explain the purpose of an amortization schedule.	Explains of the purpose of an amortization schedule but omits key elements.	Explains the purpose of an amortization schedule.	Analyzes the purpose of an amortization schedule and connects the analysis to relevant real-world situations.
Explain why interest paid in the early years of a home mortgage is more helpful in reducing taxes than interest paid in later years.	Does not explain why interest paid in the early years of a home mortgage is more helpful in reducing taxes than interest paid in later years.	Explains why interest paid in the early years of a home mortgage is more helpful in reducing taxes than interest paid in later years but omits key elements.	Explains why interest paid in the early years of a home mortgage is more helpful in reducing taxes than interest paid in later years.	Analyzes why interest paid in the early years of a home mortgage is more helpful in reducing taxes than interest paid in later years and connects the analysis to relevant real-world situations.
Explain the differences between an ordinary annuity and an annuity due.	Does not explain the differences between an ordinary annuity and an annuity due.	Explains an annuity but does not explain the key differences between an ordinary annuity and an annuity due.	Explains the differences between an ordinary annuity and an annuity due.	Analyzes the differences between an ordinary annuity and an annuity due and connects the analysis to relevant real-world situations.
Compute the future value of an interest rate.	Does not compute the future value of an interest rate.	Computes the future value of an interest rate using inaccurate or incomplete data.	Computes the future value of an interest rate.	Computes the future value of an interest rate and explains the computation.
Compute the present value of an interest rate.	Does not compute the present value of an interest rate.	Computes the present value of an interest rate using inaccurate or incomplete data.	Computes the present value of an interest rate.	Computes the present value of an interest rate and explains the computation.