Ch6 Finance Terms

studied byStudied by 254 people
0.0(1)
learn
LearnA personalized and smart learning plan
exam
Practice TestTake a test on your terms and definitions
spaced repetition
Spaced RepetitionScientifically backed study method
heart puzzle
Matching GameHow quick can you match all your cards?
flashcards
FlashcardsStudy terms and definitions

1 / 16

flashcard set

Earn XP

Description and Tags

17 Terms

1

Interest

If you borrow money you will be charged. If you deposit money you will be paid, this is....

New cards
2

Proceeds

The amount of money that you actually receive in a discounted loan.

New cards
3

Ordinary Annuity

An annuity in which payments are made at the end of the time periods of compounding.

New cards
4

Effective yield

The interest rate that you actually pay on a discounted loan.

New cards
5

Maturity Value

The amount of money that you pay back in a discounted loan.

New cards
6

Amortized loan

A loan in which both principal and interest are paid off by a sequence of equal periodic payments.

New cards
7

compound interest

interest earned on both the principal amount and any interest already earned

New cards
8

Quarterly

Occurring or made at intervals of three months. (4 times per year)

New cards
9

Discounted loan

A loan in which the calculated interest payment is subtracted, or discounted, in advance. Because this lowers the amount of available funds, the effective interest rate is increased.

New cards
10

Semi-annually

twice a year

New cards
11

Annuity

a series of equal regular deposits

New cards
12

Term

Time from the beginning of the first time period in an annuity to the end of the last time period.

New cards
13

Sinking Fund

An account that is made for accumulating money for a future need.

New cards
14

Periodic payments

Payments are made at regular intervals.

New cards
15

Equity

Money accumulated over time in a sinking fund.

New cards
16

Future value

The amount of money in an account after time has past.

New cards
17

Principal

An initial sum of money that you either borrow from or deposit into an account.

New cards

Explore top notes

note Note
studied byStudied by 3 people
670 days ago
5.0(1)
note Note
studied byStudied by 83 people
826 days ago
5.0(2)
note Note
studied byStudied by 21 people
739 days ago
5.0(1)
note Note
studied byStudied by 152 people
957 days ago
5.0(2)
note Note
studied byStudied by 3 people
630 days ago
5.0(1)
note Note
studied byStudied by 57 people
662 days ago
4.0(2)

Explore top flashcards

flashcards Flashcard (23)
studied byStudied by 4 people
732 days ago
5.0(1)
flashcards Flashcard (63)
studied byStudied by 10 people
289 days ago
5.0(1)
flashcards Flashcard (43)
studied byStudied by 30 people
686 days ago
5.0(1)
flashcards Flashcard (59)
studied byStudied by 4 people
755 days ago
4.0(1)
flashcards Flashcard (31)
studied byStudied by 91 people
376 days ago
4.0(1)
flashcards Flashcard (40)
studied byStudied by 19 people
502 days ago
5.0(1)
flashcards Flashcard (48)
studied byStudied by 3 people
693 days ago
5.0(1)
flashcards Flashcard (90)
studied byStudied by 24 people
776 days ago
5.0(1)
robot