Definition of Terms (Simple and Compound Interest)

It is charged by the lender and usually in percent.

• Principal

• Rate

• Simple Interest

• Loan Date

The amount of money borrowed or invested in the origin date.

• Principal

• Simple Interest

• Rate

• Lender

Length of time between the origin and maturity dates.

• Time or Term

• Repayment Date

• Origin

• Interest

Other term for maturity date.

• Repayment date

• Time

• Interest

• Origin

Other term for loan date.

• Time

• Origin

• Term

• Rate

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

• Lender

• Borrower

• Debtor

• Principal

The date on which money is received by the borrower.

• Origin

• Repayment date

• Term

• Rate

Amount paid or earned for the use of money.

• Interest

• Principal

• Maturity

• Rate

Amount after t years that the lender receives from the borrower on the maturity date.

• Future Value

• Simple Interest

• Compound Interest

• Principal

The interest is computed on the principal and also, on the accumulated past interest.

• Simple Interest

• Compound Interest

• Principal

• Future Value