terminologies q2

simple interest

The interest charged on borrowing that’s calculated using an original principal amount only and an interest rate that never changes.

rate

annual rate, usually in percent, charged by the lender, or rate of increase of the investment

borrower/debtor

the person (or institution) who owes the money or avails of the funds from the lender.

lender/creditor

the person (or institution) who invests the money or makes the fund available

principal

the amount of money borrowed or invested on the origin date

interest

the amount paid or earned for the use of money

time or term

the amount of time in years the money is borrowed or to be invested; length of time between the origin and maturity dates.

compound interest

the interest computed on the principal and also on the accumulated past interest

ordinary annuity

payment is made at the end of each period

payment interval

the time between the successive payment dates of an annuity

present value of an annuity

the sum of the present values of all payments to be made during the entire term of the annuity

term of annuity

the time between the first payment interval and the last payment interval

annuity

a sum of money that is paid in regular equal payments

simple annuity

an annuity whose compounding period is the same as the payment interval

general annuity

an annuity certain whose compounding period is not the same as the payment interval

periodic payment

each payment is an annuity

future values or the amount of annuity

sum of the future values of all the payments to be made during the entire term of the annuity

annuity payment

if the payment each period is fixed and the compound interest rate is fixed over a specified time the payment

annuity certain

an amount in which payment begins and ends at different times

contingent annuity

the payment extends over an indefinite or (indeterminate) length of time

deferred annuity

an annuity does not begin until a given time interval has passed

stocks

pays a dividend (money paid regularly) gradually investing then you earn

bonds

pays an interest, gradually growing as you wait

period of interval

time between the purchase of an annuity and the start of the payments for the deffered annuity

market value

the current price of a stock in which it can be sold

Stock Yield Ratio

ratio of the annual dividend per share and the market value per share. Also called current stock yield.

truth table

table that shows truth value of compound statement for all possible truth values of its simple statement

truth value

depends on the truth value of its simple statement and its connectives

logical operators

symbols of words used to connect 2 or more expressions

propositions/statements

It is a declarative sentence that is either TRUE or FALSE but NOT BOTH.

negation

denies a statement, turning it from true to false or vice versa it is denoted by ~P and is read as “not P”

conjunction

Both must be true for the _ to be true. it is denoted by

P ∧ Q and is read as “and”

disjunction

Atleast one must be true for the _ to be true. It is denoted by P V Q and is read as “or'“

conditional

If P (hypothesis) is true then Q (conclusion) must also be true. it is denoted by P → Q and is read as ‘p, then q’ or ‘p implies q’

biconditional

it is two statements that are logically equivalent. both must be true or both must be false. it is denoted as P↔Q and is read as ‘if, and only of’

business loan

is a money lent specifically for a business purpose. It may be used to start a business or to have a business expansion

consumer loan

money lent to an individual for personal or family purposes. includes credit cards, mortgages, home equity lines of credit, refinances, auto loans, student loans, as well as personal loans.

collateral

assets used to secure the loan. It may be real estate or other investments

term of the loan

time to pay the entire loan

guarantor

a person who guarantees to pay for someone else’s financial obligation if the borrowers fail to do so

conditional statement

Those statements where the hypothesis is followed by a conclusion. It is also known as the “if-then” statement.

converse statement

A conditional statements is formed by interchanging the hypothesis and the conclusion.

inverse statement

A conditional statement is formed by negating the hypothesis and the conclusion.

contrapositive statement

A conditional statement is formed by interchanging the hypothesis and the conclusion and negating both.

tautology

a compound statement that is true for every value of the individual statements. The word tautology is derived from a Greek word where ‘tauto’ means ‘same’ and ‘logy’ means ‘logic’.

fallacy

a statement that is always false.

a fallacy of affirming the conclusion

incorrect reasoning in proving p→ q by starting by assuming p and proving q.

A fallacy of denying the hypothesis

is incorrect reasoning in proving p → q by starting with assuming ~p and proving ~q.

circular reasoning

A fallacy in which the reasoner begins with what they are trying to end with.

categorical syllogism

directly asserts finds without any conditions

universal

when what is being affirmed or denied of the subject term is its whole extension. all, every, no, none, each

particular

when what is being affirmed or denied is just a part of the extension. some, most, several, few, almost all, not all, many.