Flashcards
Chapter 10 - Key Terms
Cards in this deck (11)
- 1Adjusted BalanceThe balance after partial payment less interest is subtracted from the principal.
- 2Banker's RuleTime is exact days/360 in calculating simple interest.
- 3Exact InterestCalculating simple interest using 365 days per year in time.
- 4InterestPrincipal x Rate x Time
- 5Maturity ValuePrincipal plus interest (if interest is charged). Represents amount due on the due date.
- 6Ordinary InterestCalculating simple interest using 360 days per year in time.
- 7PrincipalAmount of money that is originally borrowed, loaned, or deposited.
- 8Simple InterestInterest is only calculated on the principal. In I=P*R*T, the interest plus original principal equals the maturity value of an interest-bearing note.
- 9Simple Interest FormulaSimple Ineterst (I) = Principal (P) * Rate (R) * Time (T)
- 10TimeExpressed as years or fractional years, used to calculate simple interest.
- 11U.S. RuleMethod that allows the borrower to receive proper interest credits when paying off a loan in more than one payment before the maturity date.
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- Description
- Chapter 10 of Practical Business Math Procedures covers simple interest and the terms related to it. It goes over formulas, the date terms used, and different methods used.
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- Laney Feek
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