Terms Midterm

Question 1

A fraction or percentage being imputed to a sum of money/initial amount

Answer 1

Interest

Question 2

The initial amount of money

Answer 2

Principal

Question 3

Rate of growth of interest

Answer 3

Rate of interest

Question 4

Hoe long you invest money

Answer 4

Time

Question 5

The interest charged to a borrower /earned by a lender for the full term loan

Answer 5

Simple Interest

Question 6

Widely used type of interest

Answer 6

Simple Interest

Question 7

The amount TO BE paid

Answer 7

Maturity value

Question 8

Amount speculated to be paid

Answer 8

Future Value

Question 9

The earned final value is reinvested with the same interest

Answer 9

Compounding

Question 10

Fixed amount of money paid to someone at regular intervals

Answer 10

Annuity

Question 11

Annuity where the interest conversion period = payment interval

Answer 11

Simple Annuity

Question 12

Interest conversion period is not equal as the payment interval

Answer 12

General Annuity

Question 13

Annuity in which the periodic payment is made at the END of each payment interval

Answer 13

Ordinary Annuity

Question 14

Annuity in which the periodic payment is made at the BEGINNING of each payment interval

Answer 14

Annuity Due

Question 15

Total accumulation of the payments and interest earned

Answer 15

Future Value

Question 16

Sum of all initial payments without interest

Answer 16

Total invested value

Question 17

The difference between the future value and the total invested value

Answer 17

Interest Earned

Question 18

The principal amount that must be invested today to provide the regular payments of the annuity

Answer 18

Present Value