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Simple Interest
interest that is computed on the principal, it remains constant throughout the term
Compound Interest
interest computed on the principal and also on the accumulated past interest
Lender / Creditor
person (or institution) who invests the money or makes the funds available
Borrower / Debtor
person (or institution) who owes the money or avails of the funds from the lender
Origin / Loan Date
date on which money is received by the borrower
Repayment / Maturity Date
date on which the money borrowed or loaned is to be completely repaid
Time / Term (t)
amount of time in years the money is borrowed or invested
Time / Term (t)
length of time between the origin and maturity date
Principal (P)
amount of money borrowed or invested on the origin date
Rate (r)
annual rate, usually in percent, charged by the lender
Rate (r)
rate of increase of the investment
Interest (I)
amount paid or earned for the use of money
Maturity / Future Value (F)
amount after t years that the lender receives from the borrower on the maturity date
Annuity
a lump-sum paid over an interval of time
Annuity
series of payments made at an interval
Simple Annuity
an annuity where the payment intervals is the same as the interest period
General Annuity
an annuity where the payment intervals is not the same as the interest period
Ordinary Annuity
a type of annuity in which the payments are made at the end of each payment interval
Annuity Immediate
other term for Ordinary Annuity
Annuity Certain
an annuity in which payments begin and end at definite times
Contingent Annuity
an annuity in which the payments extend over an indefinite (or indeterminate) length of time
Periodic Payment (R)
the payment is made at the end of each period
Payment Interval
time between the successive payment dates of an annuity
Term of the annuity (t)
time between the first payment interval and last payment interval
Future Value (F)
sum of the future values of all the payments to be made during the entire term of the annuity
Present Value of n annuity (P)
sum of the present values of all payments to be made during the entire term of the annuity
Deferred Annuity
annuity that does not begin until a given time interval has passed
Period of Deferral
a time between the purchase of an annuity and the start of the payments for the deferred annuity
n
number of compounding periods
p
number of months in a payment interval
c
number of months in a compounding period
Stocks
these are ownership shares in a company
Stockholders
buyers of the stock
Stock Certificates
these verify the number of shares of stocks they own
Par Value
the per share amount as stated on the company certificate
Par Value
it is determined by the company and remains stable over time
Market Value
the current price at which it can be sold
P = M
the bond is purchase at par
P < M
the bond is purchased at a discount
P > M
the bond is purchased at premium
Common Stock
holders have voting rights
Preferred Stock
no voting rights but they receive preference over common stockholders in dividends
Stock Market
provides an orderly trading place for stock wherein prices or market value vary from day to day and within a day, the place where stocks can be bought or sold
Stockbrokers
specialists are allowed to trade on the floor
Commission
are what brokers receive for the services of both buying and selling stocks
Dividend
share in the company’s profit
Dividend Per Share
ratio of the dividends to the number of shares
Philippine Stock Exchange (PSE)
governs the stock market in the Philippines
Stock Yield Ratio
ratio of the annual dividend per share and the market value per share
Stock Yield
other term for Stock Yield Ratio
Bonds
form of long-term investment issued by a corporation or government where the purchaser becomes a creditor of the company
Bonds
represents a promise from the company to pay the face amount to the bond owner at a future date, along with interest payments at a stated rate
Issuer
company, state, or municipality that issues the bond
Coupon
periodic interest payment that the bondholder receives during the time between purchase date and maturity date; usually receive semi-annually
Coupon Rate
the rate per coupon payment period; denoted by r
Par / Face Value
the amount payable on the maturity date; denoted by F
Market Value
price at which the bond is being sold
Value
it refers to the value of index
Chg
change of the index value from the previous trading day (the difference between the value today and value yesterday)
%Chg
ratio of Chg to Val (Chg divided by Val)
52-WK-HIGH
highest selling price of the stock in the past 52 weeks
52-WK-LOW
lowest selling price of the stock in the past 52 weeks
STOCK
three-letter symbol the company uses for trading
HIGH
highest selling price of the stock on the last trading day
LOW
lowest selling price of the stock on the last trading day
DIV
dividend per share last year
VOL (100s)
number of shares (in hundreds) traded in the last trading day
CLOSE
closing price on the last trading day
NET CHG
net change between the last two trading days
Bid Size
the number of individual buy orders and the total number of shares they wish to buy
Bid Price
the price that buyers are willing to pay for the stock
Ask Price
the price that the sellers of the stock are willing to sell the stock
Ask Size
how many individual sell orders have been placed in the online platform and the total number of shares these sellers wish to sell
Loan
it is a financial obligation of paying someone a certain amount for the use of his or her money
Interest
it is the amount paid to borrow money
Principal
it is the amount of money that the loan applicant requests
Rate
it is the payment or interest level used to determine a borrower’s monthly payment
Term
it is the maturity or length of time over which a loan extends, for instance one year, five years, or more
Business Loan
money lent specifically for a business purpose
Examples of a Business Loan
Microloans
Invoice financing
Mezzanine financing
Bank loans
Asset-based financing
Cash flow loans
Business cash advances
Consumer Loan
money lent to an individual for personal or family purposes
Examples of a Consumer Loan
Credit cards
Mortgages
Home Equity lines of credit
Refinances
Auto loans
Student loans
Personal loans
Collateral
assets used to secure the loan (real estate or other investments)
Term of the Loan
time to pay the entire loan
Guarantor
person who guarantees to pay for someone else’s financial obligation if the borrowers fail to do so
Amortization
process of paying off debt with regular payments over time
Mortgage
loan from a bank or other financial institutions that help a borrower purchase a home or a car
Mortgagor
one who borrows a mortgage
Mortgagee
one who lends a mortgage
Fixed-rate mortgage
type of mortgage where interest remains constant
Obligation
what parties may go under a contract or terms of agreement
Outstanding Balance
any remaining debt at a specific time
Propositions
this is a declarative statement that is either true or false, but not both
Simple Proposition
a proposition that cannot be broken down into more than one proposition
Compound Proposition
a proposition that is formed by joining simple propositions using logical connectors
Logical Operators
connects two or more propositions
Negation
not, ~
Conjunction
and, ^
Disjunction
or, v
Conditional
if … then, →
Note 
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