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Description
Flashcards by CELIA VERDINEZ, updated more than 1 year ago
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Created by CELIA VERDINEZ
over 1 year ago
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| Question | Answer |
| Adjusted Balance | The balance after partial payment less interest is subtracted from the principal. |
| Banker's Rule | Time is exact days / 360 in calculating simple interest. |
| Exact Interest | Calculating simple interest using 365 days per year in time. |
| Interest | Principal * Rate * Time |
| Maturity Value | Principal plus interest (if interest is charged). Represents amount due on the due date. |
| Ordinary Interest | Calculating simple interest using 360 days per year in time. |
| Principal | Amount of money that is originally borrowed, loaned, or deposited. |
| Simple Interest | Interest is only calculated on the principal. In I=PxRxT, the interest plus original principal equals the maturity value of an interest-bearing note. |
| Simple Interest Formula | Interest =Principal * Rate * Time |
| Time | Expressed as years of fractional years, used to calculate simple interest. |
| U.S. Rule | Method 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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