SJI 11 GEN MATH TERMS

The amount paid for the use of another amount of money, called the principal.

• Maturity Value

• Interest

• Present Value

• Principal

The base amount in which interest is computed, typically from loaned or borrowed amounts.

• Term

• Interest Rate

• Principal (P)

• Maturity Value

The unit of time for which the principal is loaned or borrowed.

• Interest Rate

• Term (t)

• Principal

• Compound Interest

The multiplier expressed as a percent (%) of the principal to be paid each term.

• Maturity Value

• Principal

• Interest Rate (r)

• Simple Interest

The sum of the principal and the interest that accumulates over the agreed term.

• Present Value

• Maturity Value

• Compound Interest

• Interest

The amount earned for one year calculated by multiplying the principal by the interest rate.

• Maturity Value

• Simple Interest

• Compound Interest

• Principal

The method based on a 30-day month computation for determining the term.

• Exact Time

• Ordinary Time

• Installment Payments

• Maturity Value

The method based on the exact number of inclusive dates of transaction for determining the term.

• Ordinary Time

• Exact Time

• Installment Payments

• Simple Interest

The rule that states payment received must be deducted first from the amount with interest due.

• Merchant’s Rule

• Rule No. 1

• Rule No. 2

• Compound Interest

The term for the accumulated amount of a given principal at the end of a given time interval in compound interest.

• Compound Interest

• Compound Amount

• Term

• Nominal Rate