If we deposit a sum of money P in a savings account or if we borrow a sum of money P from a

lender, then P is referred to as __________________.-PRINCIPAL

It is usually computed as a percentage.-INTEREST RATE

Is the period that money was deposited or lent.-LENGTH OF TIME

The amount of money originally invested added to the total amount of interest earned on that
investment.-ACCUMULATED VALUE

The total payback of principal and interest.-MATURITY VALUE(A)OF A LOAN

Is used on short-term notes- often on duration less than 1 year.=SOMPLE INTEREST

A second method of paying interest where the interest for each period is added to the principal
before interest is calculated for the next period.-COMPOUND INTEREST

One way of comparing interest rates is provided by the use of the __________________.-
EFFECTIVE RATE

is a contract between you and an insurance company in which you make a lump-sum payment or
series of payments and, in return, receive regular disbursements, beginning either immediately or at
some point in the future-ANNUITY

Is an annuity where the payment interval coincides with the interest conversion period.-SIMPLE
ANNUITY

Is annuity where the payment interval does not coincide with the interest conversion period-
GENERAL ANNUITY

An annuity in which the payment period does not coincide with the interest conversion period.-
COMPLEX ANNUITY

This is an annuity in which the payments are made at the end of each payment period.-ORDINARY
ANNUITY

An annuity in which the payments are made at the beginning of each period.-ANNUITY DUE

Type of simple annuity where the term is given by a fixed time interval-ANNUITY CERTAIN

Type of simple annuity where a time interval that begins at a definite date but extends indefinitely-
PERPUITY

Type of simple annuity which is one that is not fixed in advance..-CONTINGENT ANNUITY

means that the earned interest is paid to your account at the end of each 3-month period and that
interest as well as the principal earns interest for the next quarter.-COMPOUNDED QUARTERLY

Other term for effective rate-EFFECTIVE ANNUAL YIELD

What interest rate would yield Php 1,200 interest on Php 10,000 in 2 years? Solve the problem and
you get the answer-6%

How long would it take to earn Php 8,000 on a principal of Php 20,000 at 5% simple interest rate?8
years
Larry borrowed Php 50,000 at 12% simple interest rate. if he repays the loan in 69 days, how much
interest do he owe? Used Ordinary method-1150

Determine the future value of an investment o Php 200,000 for 3 years at 8% simple interest rate.-
248000

is a type of agreement or contract involving a loan that is repaid over time with a set number of
scheduled payments.-INSTALLMENT LOAN

The most common, if not universal way to express the amount of interest to be paid on a loan.-
ANNUAL PERCENTAGE RATE

Is a loan for which repayment, in full or in part, may be required at any time, or made at any time-
DEMAND OF LOAN

An arrangement happens when a lender gives money or property to a borrower, and the borrower
agrees to return the property or repay the money, usually along with interest, at some future point(s)
in time.-REPAYMENT OF LOAN

It is the price of the merchandise that a person is buying.-CASH PRICE

Term if the person pays part of the cash price at the time of purchase.-DOWNPAYMENT

It is the balance is usually paid off in equal monthly installments.-AMOUNT FINANCED

It is the financial instrument representing a demand loan.-DEMAND NOTE- CASH LOAN

Is a pre-approved loan agreement between a financial institution and a borrower.-LINE OF CREDIT

Is a card entitling the bearer to a revolving line of credit with a pre-established credit limit.-CREDIT
CARD

Credit card interest-FINANCE CHARGE

The _______________given monthly to the cardholder indicates the previous balance, finance
charge, total purchases, any payments and credits, and new balance.-CREDIT CARD STATEMENT

It is generally defined as representing a share or portion of a company.-STOCK

What do you call an investor?-SHAREHOLDER

It is set by the company when the stock is first sold to the public. When the stock is resold in the
stock market, its price is determined by what the buyer is willing to buy, and what the seller is willing
to accept.-PAR VALUE

This value is published in the business or financial section of most major newspapers and online.-
MARKET VALUE

It is raised by issuing and selling shares of stocks. Investors’ ownership in a company is measured
by the number of shares they own.-CAPITAL

An investor shares directly in the success or failure of the business.-COMMON STOCK

The dividends are fixed, regardless of how the company is doing.-PREFERED STOCK

Each ownership portion, or share, is represented by a _____________.-STOCK CERTIFICATE

Consumer Loan is a type of agreement or contract involving a loan that is repaid over time with a set
number of scheduled payments.-TRUE

The interest is expressed as a percentage or a fraction of the amount of money loaned if the money
were to be loaned, with no intermediate payments or corrections, for a year.-TRUE

The rate of interest charge for money borrowed on a line of credit is often lower than the rate of
interest charged on most credit cards. The interest rate may not change over time-FALSE

If the cardholder did not pay his/her previous bill in full, the credit card or charge account company
adds a finance charge. This is interest that the company charges to a credit account for not paying
the total amount owed by the due date.-TRUE

A stock is an equity while bonds are debt. In other words, a shareholder is an owner or investor in a
firm, while a bondholder is a creditor to the firm.-TRUE

Most common stock is like a perpetuity because it has no future maturity value.-FALSE