Part 18 Flashcards

1
Q

________ interest is interest in each period calculated based on the original deposit or investment. The interest doesn’t compound

A

Simple

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2
Q

____________ interest is interest earned on the original investment amount and on previously earned interest

A

Compound

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3
Q

Return __ capital is the recovery of the amount invested

A

Of

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4
Q

Return __ capital is a reward of the assumption of risk

A

On

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5
Q

Your Annual ________ _________ is the total annual payments on a debt

A

Debt Service

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6
Q

__________ fund factor is the compound interest factor that indicates the amount per period that will grow with compound interest to $1

A

Sinking

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