Math in Modern World FINALS

amount earned for the use of borrowed money or of money deposited in a bank.

• Interest

• Principal

• Interest Rate

• Maturity Value

amount lent or deposited

• Interest

• Principal

• Interest Rate

• Maturity Value

The amount of interest paid is given as a percent of the principal

• Interest

• Principal

• Interest Rate

• Maturity Value

The accumulated amount

• Interest

• Principal

• Interest Rate

• Maturity Value

rule of converting time in years (divide months to 12 or days to 360)

• Banker's rule

• Baker's rule

• Baner's rule

• Bank's rule

also known as interest-deducted-in-advance. It is computed based on maturity value and not on the principal amount borrowed.

• Simple Interest

• Compound Interest

• Simple Discount

computed every compounding period and as such accumulates money more rapidly

• Simple Interest

• Compound Interest

• Simple Discount

refers to the time between two successive conversions

• interest period

• Frequency of conversion

• nominal rate

refers to the number of conversion periods in one year

• interest period

• Frequency of conversion

• nominal rate

1 per year

• annually

• semi-annually

• quarterly

• monthly