Simple and Compound Interest

Front

What is Interest calculated on the sum of an original principal plus accrued interest?

Back

Compound Interest.

Front

What does Frequency of Conversion refer to?

Back

The number of conversion periods in a year.

Front

What is the date on which the money borrowed or loan is to be completely repaid?

Back

Maturity Date.

Front

What is the amount of money borrowed or invested on the origin date?

Back

Principal.

Front

What is Interest calculated on principal?

Back

Simple Interest.

Front

What is the formula to compute Simple Interest?

Back

Simple Interest = Principal x Rate x Time.

Front

What is the amount after a number of years that the lender receives from the borrower on the maturity date?

Back

Maturity Value or Future Value.

Front

What is the Nominal Rate?

Back

The interest rate annually.

Front

What is the Term or Time in the context of loans?

Back

The amount of time in years the money is borrowed or invested.

Front

What is the frequency of conversion when money is compounded monthly?

Back

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