General Mathematics Reviewer

Lender or Borrower – person who invest.

Borrower or Debtor – person who owes.
Origin or Loan Date – date on which money is received by the borrower.
Repayment Date or Maturity Date – date on which money borrowed or loan is to be
completely repaid.
Time or Term (t) – amount of time in years the money is borrowed or invested.
Principal (P) – amount or money borrowed, invested or deposited on the origin date.
Rate (r) – annual rate, usually in percent, charged by the lender or rate of increase of the
investment.
Interest (I) – amount paid or earned for the use of money.
Simple Interest – interest, that is computed and the principal and then added to it.
Compound Interest – interest computed on the principal and also in the accumulated past
interest.
Maturity Value or Future Value – amount after t-years that the lender receives from the
borrower on the maturity date.
Frequency of Conversion (m) – number of conversion periods in one year.
Conversion of Interest Period – time between successive conversion of interests.
Total Number of Conversion Period (n) – n = mt (frequency of conversion) x (time in years).
Nominal Rate (i ) – annual rate of interest.
Rate (j) of interest for each conversion period.
Annuity – a sequence of payments made at equal .
ACCORDING TO PAYMENT INTERVAL AND INTEREST PERIOD
Simple Annuity – an annuity where the payment intervals is the same as the interest period.
General Annuity – an annuity where the payment interval is not the same as the interest period.
ACCORDING TO TIME PAYMENT
Ordinary Annuity (Annuity Inmediate) – a type of annuity in which the payment are made at
the end of each payment interval.
Contingent Annuity – an annuity in which the payments extend over an indefinite (ord
indeterminate) length of time.
ACCORDING TO DURATION
Annuity Certain – an annuity in which payments begin and end at definite times.
Contingent Annuity – an annuity on which the payments exceed over on indefinite (or
indeterminate) length of time.
Annuity Payment – if payment for each period is fixed and the compound interest rate is fixed
over a specified time.
Annuities – accounts associated with streams of annuity payments.
Regular or Periodic Payment (R) – each payment in annuity.
Payment Interval – the time between the successive payments dates of annuity.
Term of the Annuity (t) – the time between the first payment interval and last payment interval.
Future Value or the Amount of Annuity (F) – the sum of the future values of all the payments
to be made during the entire term of annuity.
Present Value of n annuity (P) – the sum of present values of all the payments to be made
during the entire term of annuity.