Identify the following.

(1-9)
1. It is an interest in which only original principal bears interest for the entire term of the loan.
2. The amount received by the borrower.
3. The number of units of the term for which the money is borrowed and for which interest is
calculated.
4. Fractional part of the principal that is paid on the loan.
5. The sum of the principal and the interest which is accumulated at a certain time.
6. The payment for the use of borrowed money.
7. Person or institution which loans the money.
8. Person who borrows money for any purpose.
9. Interest added to the principal at the end of a certain period of time after which the interest is
computed on the new principal, and the process is repeated until the end of the term of loan is
reached.
10. Give the importance of Mathematics of Investment.

Key:
1. Simple interest
2. Present Value/proceeds
3. Time/term
4. Rate of interest
5. Final amount/maturity value
6. Interest
7. Lender
8. Debtor/maker
9. Compound interest
10. ….