40617393
Description
Flashcards by TIAH BECKER, updated about 1 month ago
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Created by TIAH BECKER
about 1 month ago
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| Question | Answer |
| Adjusted balance | The balance after partial payment less interest is subtracted from the principal. |
| Banker's Rule | Time is exact days/360 in calculating simple interest. |
| Exact interest | Calculating simple interest using 365 days per year in time. |
| Interest | Principal × Rate × Time |
| Maturity value | Principal plus interest (if interest is charged). Represents amount due on the due date. |
| Ordinary interest | Calculating simple interest using 360 days per year in time. |
| Principal | Amount of money that is originally borrowed, loaned, or deposited. |
| Simple interest | Interest 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. |
| Simple interest formula | Simple interest (I)=Principal (P) x Rate (R) x Time (T) |
| Time | Expressed as years or fractional years, used to calculate simple interest. |
| U.S. Rule | Method that allows the borrower to receive proper interest credits when paying off a loan in more than one payment before the maturity date. |
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