Key Financial Terms

A specific type of loan used to buy real estate where the property is collateral is:

• Loan

• Conversion Period

• Mortgage

• Accumulated Value

The total worth of an investment after a certain time, including growth, is called:

• Period Rate

• Accumulated Value

• Appreciation

• Loan

If an investment earns interest 4 times a year, this refers to:

• Conversion Period

• Frequency of Conversion

• Period Rate

• Time of Term

Interest computed only on the principal amount is called:

• Compound Interest

• Simple Interest

• Conversion Period

• Frequency of Conversion

A car losing value over several years is an example of:

• Appreciation

• Depreciation

• Period Rate

• Mortgage

The time between successive conversions of interest is called:

• Rate

• Conversion Period

• Frequency of Conversion

• Time of Term

The rate of interest for one conversion period is called:

• Period Rate

• Rate

• Time of Term

• Simple Interest

Money borrowed from a bank or lender that must be paid back over time is called:

• Mortgage

• Loan

• Appreciation

• Frequency of Conversion

It is the increase in the value of an asset over time due to factors like demand or improvements.

• Depreciation

• Appreciation

• Accumulated Value

• Loan

When interest is computed on both the principal and accumulated past interest, it is called:

• Period Rate

• Simple Interest

• Compound Interest

• Rate