2q Rev Flashcards
person (or institution) who invests the money or makes the funds available.
Lender/Creditor
person (or institution) who owes the money or avails of the funds from the lender.
Borrower/Debtor
date on which the money is received by the borrower.
Origin/Loan Date
date on which the money borrowed or loan is to be completed.
Repayment/Maturity Date
interest that is computed on the principal and then added to it.
Simple Interest
amount of money borrowed or invested on the origin date.
Principlal
amount of time in years the money is borrowed or invested
Time/Term
amount of time in years the money is borrowed or invested
Rate
amount paid or earned for the use of money.
Interest
interest is computed on the principal and also on the accumulated past interests.
Compound Interest
interest is computed on the principal and also on the accumulated past interests.
Maturity/ Value
a sequence of payment made at equal (fixed) intervals or periods of time.
Annuity
it is an annuity wherein the interest conversion period is equal or the same as the payment interval.
Simple Annuity
it is an annuity wherein the interest conversion period is unequal or not the same as the payment interval.
General Annuity
Once a year
Compound Annualy
