Review on Simple Interest

Usually in percent, charged by the lender, or the increase of the investment.

• Time

• Interest

• Rate

• Principal

Amount of money borrowed or invested on the origin date.

• Interest

• Principal

• Term

• Rate

Person (or institution) who invests the money or makes the funds available.

• Borrower

• Debtor

• Principal

• Lender

Person (or institution) who owes the money or avails of the funds from the lender.

• Borrower
• Creditor

• Lender

• Principal

Interest is computed on the principal and also on the accumulated past interests.

• Compound Interest
• Simple Interest

Amount paid or earned for the use of money.

• Principal

• Interest

• Rate

• Term

It is computed by dividing the interest by the product of rate and time

• Interest

• Principal

• Rate

• Time

It is the sum of principal and simple interest

• Rate

• Principal

• Future Value

• Interest

Computed by dividing the interest by the product of principal and rate.

• Interest

• Principal

• Rate

• Time

It is the product of principal, rate and time.

• Interest

• Rate

• Time

• Principal