MATH Flashcards
_____ is the money paid for the used of the borrowed money
Interest
tWO KINDS OF INTEREST
- Simple Interest
- Compound iNTEREST
The interest paid on a principal only
Simple Interest
interest that applies to the initial principal and the accumulated interest from previous periods.
Compound iNTEREST
Simple interest formula
I = Prt
When interest is added to the principal at the end of the stipulated time is called______
Future Amount
Future Amount formula
F = P+I
R formula
r = i/pt
t formula
t=i/pr
p formula
p=i/tr
the exact count of time within a period
actual time
the assumption that a month consist of 30 days
approximate time
Length of the time is equal to the time over 365 days in a year
Exact Interest
Length of the time is equal to the time over 360 days in a year
Ordinary Interest
Two rates are _______equavalent for the same present value P, they yield the same maturity value F, at the end of the term
Equavalent rates
