Genmath

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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

Effective Rate

Annual interest rate

Nominal Rate

Payments by installment are done periodically and in equal amounts

Annuity

the time between successive payments

payment interval

sequence of payments made at equal/fixed intervals or periods of time

annuity

annuity where the payment interval is the same as the interest periods

simple annuity

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

general annuity

type of annuity in which the payments are made at the end of each payment interval; also known as "Annuity Immediate"

ordinary annuity

annuity in which payments begin and end at definite times

annuity certain

type of annuity in which the payments are made at the beginning of each payment intervals

annuity due

annuity in which the payments are extend over an indefinite lenght of time

contingent annuity

time between the first payment interval and last payment interval

term of annuity

amount of each payment

regular

sum of the future value of all the payments to be made during the entire term of annuity

future value of an annuity

sum of the present values of all the payments to be made during the entire term of annuity

present value of an annuity

refers to the time between successive period of annuity

payment period

the size of each annuity payment

periodic payment

annuity that does not begin until a given time interval has passed

deferred annuity

time between the purchase of an annuity and the start of the payment for the deferred annuity

period of referral

invests money or make funds available

Lender

owes the money or avail funds from the lender

borrower

date in which the money is received by the borrower

origin date

date on which the money borrowed is to be completely repaid

maturity date

amount of time in years the money is borrowed or invested, length of time between the origin and maturity

time

amount of money borrowed or invested on the origin date

principal

annual rate, usually in percent, charged by the lender

rate

amount paid or earned for the use of money

interest

interest that is computed on the principal and then added to it

simple interest

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

compound interest

amount after t years that the lender receives from the borrower on the maturity date

maturity value

time between successive conversions of interest

conversion or interest period

number of conversion periods in one year

frequency of conversion

includes interest up to annuities

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