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  • Genmathreviewer 2

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    Russel Salvacion
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    The document defines key terms related to interest and annuities. It explains that interest is money paid for the use of money. A creditor lends money while a debtor borrows it. Simple interest is calculated once for the full loan term while compound interest includes interest on previous interest. An annuity is a series of regular payments, which can be simple, general, certain, or perpetual depending on payment intervals and start/end dates.

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    The document defines key terms related to interest and annuities. It explains that interest is money paid for the use of money. A creditor lends money while a debtor borrows it. Simple interest is calculated once for the full loan term while compound interest includes interest on previous interest. An annuity is a series of regular payments, which can be simple, general, certain, or perpetual depending on payment intervals and start/end dates.

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    © All Rights Reserved
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    4 views1 page

    Genmathreviewer 2

    Uploaded by

    Russel Salvacion
    The document defines key terms related to interest and annuities. It explains that interest is money paid for the use of money. A creditor lends money while a debtor borrows it. Simple interest is calculated once for the full loan term while compound interest includes interest on previous interest. An annuity is a series of regular payments, which can be simple, general, certain, or perpetual depending on payment intervals and start/end dates.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Reviewer for Gen Math

    INTEREST
    - it is the sum of money paid for the use of money

    CREDITOR/LENDER
    - a person (institution) who makes the fund available

    DEBTOR/BORROWER
    - a person who owes the money

    SIMPLE INTEREST
    - it is the amount added to a deposit or loan computed once for the full term of the
    loan

    COMPOUND INTEREST
    - an interest of an interest

    ANNUITY
    - a sequence of equal payments or deposits made at a regular interval time

    SIMPLE ANNUITY
    - payment interval is the same as the interval period

    GENERAL ANNUITY
    - payment interval is not the same as the interval period

    ANNUITY CERTAIN
    - with definite beginning and ending dates

    PERPETUITY
    - with definite beginning but NO ending dates

    CONTIGENT ANNUITY
    - with no fixed terms

    ORDINARY ANNUITY
    - payments are made at the end of each payment interval

    ANNUITY DUE
    - payments are made at the beginning of each payment interval

    DEFFERED ANNUITY
    - payments are made at the end of each payment interval with the first payment
    made on a later date

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