General Mathematics Reviewer PDF

**1. Lender / creditor** - those who invest money **2. Borrower / debtor** - those who owes money **3. Origin / loan date** - date of receiving borrowed money **4. Maturity date** - repayment date (completely repaid borrowed money) **5. Time / Term** - time in years the money is borrowed **6. P...

**1. Lender / creditor** - those who invest money **2. Borrower / debtor** - those who owes money **3. Origin / loan date** - date of receiving borrowed money **4. Maturity date** - repayment date (completely repaid borrowed money) **5. Time / Term** - time in years the money is borrowed **6. Principal** - amount of money borrowed or invested **7. Rate** - charged by the lender (usually in %) **8. Interest** - amount earned for the use of money **10. Simple Interest** - interest computed on the principal then added to it. **11. Compound Interest** - interest computed on the principal and also on accumulated past interest then added to it. **Simple annuity** -- is an annuity where the payment interval is the same as interest period. **General annuity** -- is an annuity where the payment interval is not the same as the interest period. **Cash flows** -- is the term refers to payment received or payment deposit **Cash inflows** -- payment received represented by a positive number **Cash outflows** -- payment deposit represented by a negative number **Fair market value** is sometimes called economic value of cash flow -- refers to the single amount that is equivalent to the value of payment stream on a particular date called **"focal date"** **Annuity sequence** -- equal payments made at regular interval time **Ordinary annuity** -- type of annuity where payments are made at the end of every period **Present value of annuity** -- amount with regular payments (R) at a certain rate needed to make payments in the future **Deferred annuity** -- annuity that does not begin until a given time interval has passed **Period of deferral** -- time between the purchase of an annuity and start of payments for deferred annuity **Business Loan** -- money lent specifically for business purposes. It is used to start a business or business expansion. **Consumer Loan** -- money lent to an individual for personal or family purposes. **Collateral** -- assets used to secure the loan. It may be a real state or other investment **Mortgage** -- loan with legal agreement secured by a collateral, that the borrower is obliged to pay at specified term **Mortgagor** -- the borrower in mortgage **Mortgagee** -- the lender in mortgage **Chattel Mortgage** -- mortgage on a movable property **Guarantor** -- a person who guarantees to pay for someone else\'s financial obligation if the borrowers fails to do so **Outstanding Balance** -- remaining debt at a specified time **Amortization Method** -- a method of paying a loan (principal and interest) on installment basis usually of equal amounts at a regular intervals **Stocks** - - **StockHolders** - **Two Types of Stocks** 1. - 2. - **Dividends** - **Stocks Markets** - **Market value** - **Stock Yield Ratio** - **Par Value** - **Bonds** - - **Coupon** - **Coupon rate** - **Price of bonds** - **Par value(Face Value)** -