Flashcards
Practical Business Math Procedures - Chapter 10 Key Terms Flash Cards
Flashcards do conjunto (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 * Rate * 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 Interest (I) = Principal (P) * Rate (R) * Time (T)
- 10TimeExpressed as years of 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.
Informações
- Descrição
- Flash cards for the Key Terms section of Practical Business Math Procedures Chapter 10.
- Criado por
- DANIEL OLDHAM · set 2024
- Atualizado
- 2 set 2024
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