Questions and Answers
What is the main difference between simple interest and compound interest?
Simple interest remains constant throughout the term, while compound interest is computed on the principal and also on the accumulated past interest.
Who is the person (or institution) who invests the money or makes the funds available?
Lender or creditor
What does 'origin or loan date' refer to?
Date on which money is received by the borrower
What does 'maturity value or future value' represent?
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How is 'time or term (t)' defined in the context of borrowing and investing?
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What does 'rate (r)' represent in the context of borrowing and investing?
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What does 'principal (P)' refer to in borrowing and investing?
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