NAME: Jullien L.

Villegas

RATE –
A rate is a special ratio in which the two terms are in different units.
TIME- In math, time can be defined as the ongoing and continuous sequence of events
that occur in succession, from the past through the present to the future. Time is a used
to quantify, measure or compare the duration of events or the intervals between them,
and even, sequence events.
PRINCIPAL – The total amount of money borrowed (or invested), not including any
interest or dividends. 
INTEREST- interest is a fee paid for borrowing money or other assets. 
EXACT INTEREST- Interest that is calculated and therefore repaid on the basis of a 365-
day year (that is, an actual year), as opposed to a 360-day year, which is used in some
calculations.
ORDINARY INTEREST- Ordinary interest is calculated on the basis of a 360-day year or a
30-day month; exact interest is calculated on a 365-day year. ... Interest is computed on
an agreed rate of interest. It is a certain percent of the sum borrowed called the
principal.
FINAL AMOUNT – Final Amount means the amountof the current assets included in the
Acquired Assets as at the Closing Date less the amount of the current liabilities included
in the Assumed Liabilities as at the Closing Date, as set forth on the Closing Statement.
MATURITY VALUE- Maturity value is the amount payable to an investor at the end of a
debt instrument's holding period (maturity date). For most bonds, the maturity value is
the face amount of the bond. ... If all of the interest is paid at maturity, each of the
interest payments may be compounded.
PERIODIC RATE – The periodic rate equals the annual interest rate divided by the
number of periods. For example, the interest on a home loan is usually calculated
monthly, so if the annual interest rate is 4 percent, then you divide that by 12 and get
0.33 percent. That's your interest every month.
CONVERSION PERIOD – Conversion period refers to how often the interest is calculated
over the term of the loan or investment. It must be determined for each year or fraction
of a year. e.g.: If the interest rate is compounded semiannually, then the number
of conversion periods per year would be two.