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Questions and Answers
Two annual rates with different conversion period that will earn the same maturity value for the same time/term.
Two annual rates with different conversion period that will earn the same maturity value for the same time/term.
Equivalent Rate
Rate when compounded annually will give the same compound each year with the nominal rate; denoted by 1^i
Rate when compounded annually will give the same compound each year with the nominal rate; denoted by 1^i
Effective Rate
Annual interest rate
Annual interest rate
Nominal Rate
Payments by installment are done periodically and in equal amounts
Payments by installment are done periodically and in equal amounts
the time between successive payments
the time between successive payments
sequence of payments made at equal/fixed intervals or periods of time
sequence of payments made at equal/fixed intervals or periods of time
annuity where the payment interval is the same as the interest periods
annuity where the payment interval is the same as the interest periods
annuity where the payment interval is not the same as the interest period
annuity where the payment interval is not the same as the interest period
type of annuity in which the payments are made at the end of each payment interval; also known as "Annuity Immediate"
type of annuity in which the payments are made at the end of each payment interval; also known as "Annuity Immediate"
annuity in which payments begin and end at definite times
annuity in which payments begin and end at definite times
type of annuity in which the payments are made at the beginning of each payment intervals
type of annuity in which the payments are made at the beginning of each payment intervals
annuity in which the payments are extend over an indefinite lenght of time
annuity in which the payments are extend over an indefinite lenght of time
time between the first payment interval and last payment interval
time between the first payment interval and last payment interval
amount of each payment
amount of each payment
sum of the future value of all the payments to be made during the entire term of annuity
sum of the future value of all the payments to be made during the entire term of annuity
sum of the present values of all the payments to be made during the entire term of annuity
sum of the present values of all the payments to be made during the entire term of annuity
refers to the time between successive period of annuity
refers to the time between successive period of annuity
the size of each annuity payment
the size of each annuity payment
annuity that does not begin until a given time interval has passed
annuity that does not begin until a given time interval has passed
time between the purchase of an annuity and the start of the payment for the deferred annuity
time between the purchase of an annuity and the start of the payment for the deferred annuity
invests money or make funds available
invests money or make funds available
owes the money or avail funds from the lender
owes the money or avail funds from the lender
date in which the money is received by the borrower
date in which the money is received by the borrower
date on which the money borrowed is to be completely repaid
date on which the money borrowed is to be completely repaid
amount of time in years the money is borrowed or invested, length of time between the origin and maturity
amount of time in years the money is borrowed or invested, length of time between the origin and maturity
amount of money borrowed or invested on the origin date
amount of money borrowed or invested on the origin date
annual rate, usually in percent, charged by the lender
annual rate, usually in percent, charged by the lender
amount paid or earned for the use of money
amount paid or earned for the use of money
interest that is computed on the principal and then added to it
interest that is computed on the principal and then added to it
interest is computed on the principal and also on the accumulated past interest
interest is computed on the principal and also on the accumulated past interest
amount after t years that the lender receives from the borrower on the maturity date
amount after t years that the lender receives from the borrower on the maturity date
time between successive conversions of interest
time between successive conversions of interest
number of conversion periods in one year
number of conversion periods in one year
Flashcards
Equivalent Rate
Equivalent Rate
Two annual rates with different conversion periods that yield the same maturity value for the same time/term.
Effective Rate
Effective Rate
The annual rate when compounded annually that gives the same compound interest each year as the nominal rate.
Nominal Rate
Nominal Rate
The annual interest rate.
Annuity
Annuity
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Payment Interval
Payment Interval
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Simple Annuity
Simple Annuity
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General Annuity
General Annuity
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Ordinary Annuity
Ordinary Annuity
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Annuity Due
Annuity Due
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Annuity Certain
Annuity Certain
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Contingent Annuity
Contingent Annuity
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Term of Annuity
Term of Annuity
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Regular (payment)
Regular (payment)
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Future Value of an Annuity
Future Value of an Annuity
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Present Value of an Annuity
Present Value of an Annuity
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Payment Period
Payment Period
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Periodic Payment
Periodic Payment
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Deferred Annuity
Deferred Annuity
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Period of Referral
Period of Referral
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Lender
Lender
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Borrower
Borrower
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Origin Date
Origin Date
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Maturity Date
Maturity Date
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Time (in loan/investment)
Time (in loan/investment)
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Principal
Principal
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Rate
Rate
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Interest
Interest
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Simple Interest
Simple Interest
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Compound Interest
Compound Interest
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Maturity Value
Maturity Value
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Conversion/Interest Period
Conversion/Interest Period
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Frequency of Conversion
Frequency of Conversion
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