Q2 Finals

Question 1

amount of money
borrowed or invested on the origin date.

Answer 1

principal

Question 2

usually expressed in
percent, charged by the lender, or
rate of increase of the investment.

Answer 2

annual rate

Question 3

Amount of time in
years the money is borrowed or
invested.

Answer 3

time/term

Question 4

Person (institution)
who invests the
money or makes the
funds available.

Answer 4

lender

Question 5

Person (institution)
who owes the
money or avails of
the funds from the
lender.

Answer 5

debtor

Question 6

Date on which
money received
by the borrower.

Answer 6

origin

Question 7

Date on which the
money borrowed,
or loan is to be
completely repaid.

Answer 7

maturity date

Question 8

Amount of time in
years the money is
borrowed or
invested.

Answer 8

term

Question 9

Amount of money
borrowed or invested
on the origin date.

Answer 9

principal

Question 10

– annual rate,
usually in percent, charged
by the lender, or rate
increase of the investment

Answer 10

rate (r)

Question 11

– amount paid
or earned for the use of
money

Answer 11

interest (i)

Question 12

interest is calculated on
the principal only

Answer 12

simple interest

Question 13

interest is computed
on the principal and on
the accumulated past
interests

Answer 13

compound interest

Question 14

shows how
the truth or falsity of a
compound statement
depends on the truth or
falsity of the simple
statements from which it is
constructed.

Answer 14

truth table

Question 15

Proposition that is
always TRUE.

Answer 15

tautology

Question 16

Proposition that is
always FALSE.

Answer 16

contradiction

Question 17

Proposition is neither a
tautology nor a contradiction—
that is, if there is at least one
row where it is true and at least
one row where it is untrue

Answer 17

contigency

Question 18

is a sequence
of payments made at
equal (fixed) intervals
or period of time.

Answer 18

annuity

Question 19

An
Annuity where
the payment
interval is the
same as the
interest
period.

Answer 19

simple annuity

Question 20

an
annuity where
the payment
interval is not
the same as
the interest
period.

Answer 20

general annuity

Question 21

– A
type of Annuity
in which the
payments are
made at the end
of each payment
interval

Answer 21

ordinary annuity ( annuity immediate )

Question 22

A type of
Annuity in which
the payments
are made at the
beginning of
each payment
interval.

Answer 22

annuity due

Question 23

An Annuity in
which payments
begins and end at
definite times.

Answer 23

annuity certain

Question 24

An
Annuity in which
payments extend
over indefinite (or
undetermined)
length of time.

Answer 24

contigent annuity

Question 25

Time between the first payment
interval and last payment
interval.

Answer 25

term of annuity (t)

Question 26

The amount of each payment.

Answer 26

periodic payment (r)

Question 27

The time between
successive payments.

Answer 27

payment interval

Question 28

Sum of all payments to be
made during the entire term of
the annuity

Answer 28

future value of annuity (f)

Question 29

Price of purchase equal to
the down payment plus
the present value of the
installment payment.

Answer 29

cash price or cash value

Question 30

Time between successive
conversions of interest.

Answer 30

CONVERSION /
INTEREST PERIOD

Question 31

Number of conversion
periods in one year.

Answer 31

FREQUENCY OF
CONVERSION (m

Question 32

Annual rate of interest

Answer 32

NOMINAL RATE (𝒊
(𝒎)
)

Question 33

Amount earned for one year calculated by
multiplying the principal by the interest rate.
*Borrowing, bonding and saving in financial
institutions apply compound interest.
* Used for long-term transactions

Answer 33

COMPOUND INTEREST