genmath finals

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, →