GEN MATH TERMS

The base amount on which interest is computed, often referring to loaned or borrowed sums.

• Term

• Principal

• Interest Rate

• Compound Interest

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

• Term

• Ordinary Time

• Maturity Value

• Nominal Rate

The multiplier expressed as a percentage (%) of the principal that is paid each term.

• Exact Time

• Promissory Note

• Interest Rate

• Compound Amount

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

• Simple Interest

• Interest

• Term

• Nominal Rate

The total of the principal and the interest accumulated over an agreed term.

• Compound Interest

• Maturity Value

• Promissory Note

• Exact Time

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

• Simple Interest

• Compound Interest

• Compound Amount

• Nominal Rate

A time calculation based on a 30-day month.

• Exact Time

• Promissory Note

• Ordinary Time

• Compound Amount

The time calculation based on the exact number of days between transaction dates.

• Exact Time

• Term

• Interest Rate

• Ordinary Time

A written legal statement issued by a person who owes a certain amount to another person or company.

• Promissory Note

• Simple Interest

• Term

• Nominal Rate

The accumulated total of the principal and interest at the end of a specified period.

• Compound Amount

• Principal

• Maturity Value

• Exact Time