Reviewer Flashcards
Person (or institution) who invests the money or makes the fund available.
Lender or creditor
A person (or institution) who owes the money or avails of the funds from the lender.
Borrower or Debtor
A date on which the money is received by the borrower.
Origin or loan date
The date on which the money borrowed, or loan is to be completely repaid.
Repayment date or maturity date
Amount of time in years the money is borrowed or invested; length of time between the origin and maturity dates.
Time or term (t)
The amount of money borrowed or invested on the origin date.
Principal (P)
Annual rate, usually in percent, charged by the lender, are raid of increase of the investment.
Rate (r)
Amount paid or earned for the use of money.
Interest (I)
Interest that is computed on the principle and then added to it
Simple interest (Is)
Interest is computed on the principal and also on the accumulated past interest
Compound interest (Ic)
A sequence of payments made at equal (fixed) intervals or period of time.
Annuity
Time between the first payment interval and last payment interval
Term of an annuity (t)
The amount of each payment
Regular or periodic payment (R)
Some of future values of all the payments to be made during the entire term of the annuity
Amount (future value) of an annuity (F)
Some of the present values of all the payments to be made during the entire term of an annuity
Present value of an annuity (P)
